Matching Supply With Demand 2nd Edition Gerard Cachon - Solutions

(McDonald's) The following figures are taken from the 2003 financial statements of McDonald's and Wendy's.' Figures are in million dollars.a. In 2003, what were McDonald's inventory turns? What were Wendy's inventory turns?b. Suppose it costs both McDonald's and Wendy's $3 (COGS) per their value
(Major U.S. Retailers) The following table shows financial data (year 2004) for Costco Wholesale and WaI-Mart, two major U.S. retailers.Assume that both companies have an average annual holding cost rate of 30 percent (i.e., it costs both retailers $3 to hold an item that they procured for $10 for
(Mt. Kinley Consulting) Mt. Kinley is a strategy consulting firm that divides its consul- tants into three classes: associates, managers, and partners. The firm has been stable in size for the last 20 years, ignoring growth opportunities in the 90s, but also not suffering from a need to downsize in
(Industrial Baking Process) Strohrmann, a large-scale bakery in Pennsylvania, is laying out a new production process for their packaged bread, which they sell to several grocery chains. It takes 12 minutes to bake the bread. How large an oven is required so that the company is able to produce 4,000
(Highway) While driving home for the holidays, you can't seem to get Little's Law out of your mind. You note that your average speed of travel is about 60 miles per hour. Moreover, the traffic report from the WXPN traffic chopper states that there is an average of 24 cars going in your direction on
What is the inventory cost for a $30 (COGS) item? You may assume that inventory turns are independent of the price. (LaVilla) LaVilla is a village in the Italian Alps. Given its enormous popularity among Swiss, German, Austrian, and Italian skiers, all of its beds are always booked in the winter
(Apparel Retailing) A large catalog retailer of fashion apparel reported $100,000,000 in revenues over the last year. On average, over the same year, the company had $5,000,000 worth of inventory in their warehouses. Assume that units in inventory are valued based on cost of goods sold (COGS) and
(Inventory Cost) A manufacturing company producing medical devices reported $60,000,000 in sales over the last year. At the end of the same year, the company had $20,000,000 worth of inventory of ready-to-ship devices.a. Assuming that units in inventory are valued (based on COGS) at $1,000 per unit
(Airline) Consider the baggage check-in of a small airline. Check-in data indicate that from 9 a.m. to 10 a.m., 255 passengers checked in. Moreover, based on counting the number of passengers waiting in line, airport management found that the average number of passengers waiting for check-in was
(Dell) What percentage of cost of a Dell computer reflects inventory costs? Assume Dell's yearly inventory cost is 40 percent to account for the cost of capital for financing the inventory, the warehouse space, and the cost of obsolescence. In other words, Dell incurs a cost of $40 for a $100

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