Questions and Answers of Operations And Supply Chain Management

Meyers Window Company introduced a new window design but sales were below expectations. Sales in units last year were 800 units. Variable cost per unit averaged $105.72, the fixed cost was $42,000,
The Vera Molding company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding. If done in-house, fixed cost would be $350,000 with variable cost at $30 per
Research and write a short paper on the advantages and disadvantages of “technology transfer” when a firm partners with a firm in another country.
What is the economic payback in years for this possible RFID adoption?
Should Drew and Caroline go into this business?
What does a break-even analysis tell you about this business venture? What if they could reduce variable cost and/or increase the average price per wash?
Define inventory and provide some examples.
Jefferson Manufacturing in problem 47 has another cellular layout and process shown in Exhibit 11.31.a. Where is the bottleneck workstation? Cite one TOC principle from Exhibit 11.23 that explains
A manufacturer’s average WIP inventory for Part #2934 is 995 parts. The workstation produces parts at the rate of 225 parts per day. Use the Excel template Little’s Law to find the average time a
An express checkout line at a grocery store takes an average of 3 minutes to ring-up a customer’s order. On average six customers are in the checkout line. Use the Excel template Little’s Law to
Trucks using a single server loading dock have a mean arrival rate of 12 per day. The loading/unloading rate is 18 per day. Use the Single Server Queue Excel template to answer the following
An accounts receivable manager processes 200 checks per day with an average processing time of 15 working days. Use the Excel template Little’s Law to find the average number of accounts receivable
Arrivals to a single server queue occur at an average rate of 3 per minute. Use the appropriate Excel function to develop the probability distribution for the number of arrivals for x = 0 through 10.
A mail-order nursery specializes in European beech trees. New orders, which are processed by a single shipping clerk, have a mean arrival rate of six per day and a mean service rate of eight per day.
Pete's Market is a small local grocery store with one checkout counter. Shoppers arrive at the checkout lane at an average rate of 15 customers per hour and the average order takes three minutes to
Assume trucks arriving for loading/unloading at a truck dock from a single server waiting line. The mean arrival rate is four trucks per hour, and the mean service rate is five trucks per hour. Use
Marty’s Barber Shop has one barber. Customers arrive at a rate of 2.2 per hour, and haircuts are given at an average rate of five customers per hour. Use the Single Server Queue Excel template to
Long lines of patients wait for CAT scanning service in a hospital. Patients arrive for scans at a rate of 1.8 per hour. The average processing time for CAT service is 27 minutes per patient.
Fore and Aft Marina is a new marina planned for a location on the Ohio River near Madison, Indiana. Assume that Fore and Aft decides to build one docking facility and expects a mean arrival rate of
Explain the importance of inventory, types of inventories, and key decisions and costs.
The City Beverage Drive-Thru is considering a two-server system. Cars arrive at the store at the mean rate of six per hour. The service rate for each server is 10 per hour. Use the Multiple Server
The district manager of a fast-food restaurant chain was receiving numerous complaints about customers waiting too long at the counter to place and receive their order. During the peak hour of store
How does inventory affect a firm’s financial performance?
Define environmentally preferable purchasing or green purchasing.
Define and explain the different types of inventory costs that managers must consider in making replenishment decisions. How can these costs be determined in practice?
How does order cost differ from setup cost?
What is a SKU? Provide some examples in both goods and services.
Explain the difference between independent and dependent demand, deterministic and stochastic demand, and static and dynamic demand. Provide an example of an inventory item for each combination of
Define lead time. What factors affect lead time?
Describe the two different types of stockouts that firms often face. What must be done to prevent them?
Describe the major characteristics that impact inventory decisions. One of the first steps in analyzing an inventory problem should be to describe the essential characteristics of the environment and
Describe how to conduct an ABC inventory analysis. ABC analysis consists of categorizing inventory items or SKUs into three groups according to their total annual dollar usage.
Define inventory position. Why is inventory position used to trigger orders in a FQS rather than the actual stock level?
Define cycle inventory and explain how it is computed.
What is the EOQ model? What assumptions are necessary to apply it? How do these assumptions change the nature of the cycle inventory pattern graphically?
Explain how the total annual inventory cost is expressed in the EOQ model.
Discuss the sensitivity of the EOQ model’s optimal solution to changes in the model parameters. Why is this important?
How are optimal lot sizes for a quantity discount model computed?
Define service level. Why is it not necessarily desirable to attempt to attain a 100-percent service level?
Explain how a fixed-order-quantity inventory system operates and how to use the EOQ and safety stock models.
Describe how to apply the single-period inventory model.
Provide examples of perishable inventory. How does fresh fruit differ from a concert seat even though both are perishable?
The Lemma Company manufactures and sells ten products. Managers find ways to reduce the setup and inventory holding costs by one-half. What effect will this have on the EOQs for the ten products?
Why are quantity discounts often given by suppliers? How do these affect the customer’s inventory decisions?
Why does the fixed period model have to cover the time period of T + L while the fixed order quantity model must cover only the time period L? Why is this important?
After one year you are promoted to assistant manager and realize current inventory management practices are not systematic with too much stock of some SKUs and too little of others. Your retail store
Given the information in Exhibit 13.12 for the Edwin Company, use the Total Supply Chain Cost Excel template to find the costs associated with the supply chain. The order size is Q = 2,500 units and
When is simulation useful in analyzing inventory systems?
Given the weekly demand data in Exhibit 12.25 illustrate the operation of a fixed-order-quantity inventory system with a reorder point of 75, an order quantity of 100, and a beginning inventory of
What is the inventory position if the on-hand quantity is 462 units, scheduled receipts are 200 units, and 130 units are on backorder?
What are the z-values for service levels of 80, 85, 90, 96, and 99 percent, assuming demand is normally distributed?
Brenda, in Problem 43, wants to consider setting up a fixed-period inventory system for the 28-ounce bottle of Super Algaecide (SA) SKU. At the beginning of the current week, D. J. Kole, the
A manufacturing firm makes custom orthopedic parts for human knee, hip, and shoulder replacements. Because shipping the custom part(s) prior to the scheduled surgery date is essential, compare the
TV Galore is a new specialty store that sells television sets, video games, and other television-related products. A new Japanese-manufactured game sells cost $400.a. Set up a fixed-order-quantity
Given the information in Exhibit 13.13 for Rockland, Inc, use the Total Supply Chain Cost Excel template to compute the costs associated with the supply chain. The order quantity is 20,000 units, and
Given the information in Exhibit 13.15 and a budget of $5,000,000, what is the most that Loyola Machining can pay for each manufactured unit? Assume one year is 250 working days and the order size is
1. Research short- and long-term risks in the global diamond supply chains and write a short paper (maximum of 3 pages) defining what these risks are and how they are mitigated by major diamond
Explain the SCOR model. Why is it useful in managing supply chains?
In this chapter, we noted that the EDD rule minimizes the maximum job tardiness and maximum lateness while the SPT rule minimizes the average flowtime. However, neither of these rules minimize the
Irene’s Kitchen & Catering Service sells three kinds of cakes—single, double, and triple layers. The product mix is 30% single layer, 50% double layer, and 20% triple layer. The bills of
Mike Reynolds has four assignments due in class tomorrow, and his class times are as follows.Each class lasts one hour, and Mike has no other classes. It is now midnight, and Mike estimates that the
Garden Manufacturing is a small, family-owned garden tool manufacturer located in Florence, South Carolina. The bills of materials for models A and B of a popular garden tool are shown in Exhibit
The maternity ward of a hospital sends one baby blanket home with each newborn baby. The following information is available for the baby blankets:a. As the new maternity ward manager, you decide
Chapman Pharmaceuticals, a large manufacturer of drugs, has this aggregate demand forecast (in thousands of liters) for a liquid cold medicine.The firm has a normal production rate of 90 thousand
Tune Football Helmets Company is considering changing the current inventory-control system for football helmets. The information regarding the helmets is given below:a. The firm decides to use a
Wildcat Tools is a distributor of hardware and electronics equipment. Their socket wrench inventory needs better management. The information regarding the wrenches is given below.a. The company
Berta’s Shoe Company is considering a change of their current inventory-control system for soccer shoes. The information regarding the shoes is given below.The company decides to use a
Handyman Hardware orders power mowers from a major Midwestern manufacturer. The following quantity discount schedule applies to 21-inch, self-propelled, electric start power mowers: Order Size 0 to
The Greyhound Company is considering changing its current inventory-control system for electronic picture frames. The information regarding one e-frame is given below. Demand = 200 units/week Lead
A manufacturer procures a subassembly from a supplier. The annual demand is 120,000 units, cost per unit is $6, inventory-carrying charge is 10 percent, and the order cost is $200. For orders between
Find the optimal order quantity for an annual demand of 10,000 units, a cost per unit of $3, an inventory-carrying charge rate of 20 percent, and an order cost of $32. For orders between 100 and 1999
Explain the role of the purchasing function
What are the three key principles that should be used in working with suppliers?
Explain supply chain and value chain integration.
List the activities associated with logistics
Cite and explain one advantage and one disadvantage of each of the following transportation modes: air, rail, truck, ships and barges, and pipelines.
What is vendor-managed inventory?
Explain the bullwhip effect in supply chains.
Describe the types of risks supply chains face and ways to mitigate them.
Describe how e-commerce has changed the role of supply chains.
List and describe the important metrics used in supply chain performance and be able to evaluate total supply chain costs.
Describe the components of cash-to-cash conversion cycle analyses. What are the implications of positive and negative cash flows?
Draw a supply chain flowchart similar to Exhibit 13.1 using the SCOR Model for a business you have worked in or have experience with. Describe how the supply chain works. If you have little or no
What is a certified supplier? Why is supplier certification important?
Describe how organizations are incorporating sustainability issues in managing their supply chains and explain how manufactured goods recovery and reverse logistics work
Research the job of a global sourcing manager and describe the job duties, travel requirements, and skill set (maximum of two typed pages).
Select three types of supply chain risks and explain in-depth how supply chain managers can help mitigate these risks. That is, develop an action plan to mitigate these risks (maximum of two typed
Research and find a “return facilitator.” Describe what they do and how they make money (maximum of two typed pages).
Research and find a good or service supply chain with a quantifiable carbon footprint. Write a short paper (maximum of two typed pages) on the topic, and if possible, how the carbon footprint was
Research and find a physical good that is biodegradable or carbon neutral. Be prepared to present your findings to the class in a two- to five-minute discussion.
Over the past year, Keto Grocery Store had a cost of goods sold of $24,500,000 and an average value of inventory of $1,100,500. What is its inventory turnover? What does it mean?
A big box electronics store sells 250 65-inch televisions during the year. The store maintains an average inventory of five units. What is its inventory turnover? What implications does this have for
A manufacturer of large industrial electric motors has a cost of goods sold of $111,690,000 and an average inventory value of $14,609,300. What is its inventory turnover? What does it mean?
Given the information in Exhibit 13.10, compute the procurement, oversight, transportation, order cycle inventory, and pipeline inventory costs, and total supply chain costs for an air conditioner
Given the information in Exhibit 13.11, what are the procurement, oversight, transportation, order cycle inventory, and pipeline inventory costs, and total supply chain costs for using the supplier
What are total purchase and oversight costs if annual demand is 1,000,000 units, the purchase price is $2.42, and the management oversight costs to monitor and expedite the trans-Pacific shipment are
What are order cycle costs if annual demand is 8,000 units, the order quantity is 1,000 units, and annual order cost is $97? What if the order size changes to 500 units or 8,000 units?
What is the pipeline inventory value if average daily demand is 82 units, the lead time is 20 days, and annual inventory carrying costs is $12?
What is the annual transportation cost if annual demand is 240,000 units and the cost to transship a unit is $0.80 per unit?
Consider the following performance data in for Modular Computers, Inc (MCI). Sales = $34 million, cost of goods sold = $30 million, total average inventory = $428,000, accounts receivable =

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