8:02◄ SearchExpert Q&A☎differentiation all can reduce the amount ofinventory in the supply chain?Which of the following best explains why locationpooling, lead-time pooling, and delayedDoneAll three strategies reduce the in-stock probability.O All three strategies make customers wait longer toreceive their product.O All three strategies reduce the total lead time from thesupply source (e.g., a factory) to the end consumer.All three strategies reduce the variability demandwithin the supply chain.

Location Pooling: Location Polling is defined as it is a strategy which helps to…

Answered: Which of the following best explains…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Dara Jones, operations manager of Arrow Distributing Corp., likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. Net Revenue Cost of sales Inventory Total assets $16,480 $14,740 $1,010 $9,220 a) What is its weeks of supply? weeks (round your response to two decimal places). b) What percentage of Arrow's assets are committed to inventory? % (enter your response as a percentage rounded to two decimal places). c) What is Arrow's inventory turnover? times per year (round your response to two decimal places). d) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, is
b. Forward Thinking Limited (FTL) has used a fixed-time period inventory system that involvedtaking a complete inventory count of all items each month. However, increasing labor costs, areforcing FTL, to examine alternative ways to reduce the amount of labour involved in inventorystockrooms, yet without increasing other costs, such a shortage costs. Table 4 (below) is arandom sample of 20 FTL’s items.6Table 4. Annual Usage by Value of a sample of FTL’s InventoryItem Number Annual Usage ($) Item Number Annual Usage ($)1 10,700 11 2,8502 14,100 12 1,5003 4,100 13 3,3004 16,100 14 2,6005 8,200 15 110,1006 1,900 16 14,9007 84,100 17 9,6008 990 18 1,8009 1040 19 3,80010 94,100 20 12,600 (i) What would you recommend FTL to do to cut back its labor cost? (Illustrate using an ABCplan).
A firm orders a number of items from a regional warehouse every 2 weeks. Deliverytakes 1 week. Average demand is 200 units per week, and safety stock is held at2 weeks’ supply.a. Calculate the target level.b. If 600 units are on hand, how many should be ordered?
David Alexander has compiled the following table of six itemsin inventory at Angelo Products, along with the unit cost andthe annual demand in units:IDENTIFICATION CODE UNIT COST ($) ANNUAL DEMAND(UNITS)XX1 5.84 1,200B66 5.40 1,1103CPO 1.12 89633CP 74.54 1,104R2D2 2.00 1,110RMS 2.08 961 Use ABC analysis to determine which item(s) should be care-fully controlled using a quantitative inventory technique and which item(s) should not be closely controlled.
1CASE STUDY - The UK’s National Blood ServiceNo inventory manager likes to run out of stock. But for blood services, such as the UK’s National Blood Service (NBS) the consequences of running out of stock can be particularly serious. Many people owe their lives to transfusions that were made possible by the efficientmanagement of blood, stocked in a supply network that stretches from donation centres through to hospital blood banks. The NBS supply chain has three main stages:1. Collection, which involves recruiting and retaining blood donors, encouraging them to attend donor sessions (at mobile or fixed locations) and transporting the donated blood to their local blood centre.2. Processing, which breaks blood down into its constituent parts (red cells, platelets and plasma) as well over twenty other blood-based ‘products’.3. Distribution, which transports blood from blood centres to hospitals in response to both routine and emergency requests. Of the Service’s 200,000 deliveries a year,…
. Characterize the following decision as either tactical or strategic: The discounts to offeron inventory available for an end-of-season sale.a. Tactical b. Strategic
Southern Markets, Inc., is considering the use of ABC analysis to focus on the most critical SKUs in its inventory. Currently, there are approximately 20,000 different SKUs with a total dollar usage of $10,000,000 per year.a. What would you expect to be the number of SKUs and the total annual dollar usage for A items, B items, and C items at Southern Markets, Inc.?350 PART 2 Managing Customer Demandb. The following table provides a random sample of the unit values and annual demands of eight SKUs. Categorize these SKUs as A, B, and C items.SKU Code Unit Value Demand (Units)A104 $2.10 2,500D205 $2.50 30X104 $0.85 350U404 $0.25 250L205 $4.75 20S104…
Company B sold 50% of the 5,000 items that it carried last week. There were 500 items for which some demand was not satisfied. What is the stockout probability for last week? A) 10% B) 50% C) 85% D) 28%
***** The company Marombeiro is a commercial representative of a food supplement widely consumed in gyms. The average daily demand for the product is 1,500 units and a standard deviation of 300 units. Average shipping time is 5 days. Of course, if the order is placed at the end of the week, it may take a little longer to receive the shipment, so the standard deviation of the delivery time is 2 days. The unit has a value of R$ 50.00 per unit in stock, an order cost of R$ 50.00 and an annual maintenance fee of 20%. Suppose Company Marombeiro wants to change the service to 99%. How many days of safety stock the company will have. ( )5.12 days ( )5.67 days ( )5.33 days ( )4.77 days
Dara Jones, operations manager of Arrow Distributing Corp., likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. Net Revenue $16,680 Cost of sales $13,980 Inventory $1,020 Total assets $8,360 a) What is its weeks of supply? decimal places). weeks (round your response to two b) What percentage of Arrow's assets are committed to inventory? response as a percentage rounded to two decimal places). c) What is Arrow's inventory turnover? decimal places). % (enter your times per year (round your response to two d) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, is better worse the same
Dara Jones, operations manager of Arrow Distributing Corp., likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. $17,300 $14,230 $1,100 $8,440 a) What is its weeks of supply? weeks (round your response to two decimal places). b) What percentage of Arrow's assets are committed to inventory? % (enter your response as a percentage rounded to two decimal places). c) What is Arrow's inventory turnover? times per year (round your response to two decimal places). d) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, is Net Revenue Cost of sales Inventory Total assets
If the company in #8 uses exponential smoothing (smoothing factor = .6) and the forecast for the year is the figure they use for EOQ calculations, calculate the EOQ using the following information: The cost of ordering and carrying cost % are the same as #7 Cost of ordering: $25 Carrying costs: 45% Starting with 2018, Forecast the 2020 demand using exponential smoothing and then use that forecast as the annual demand. year sales 2017 1,000,000 2018 1,200,000 2019 2,000,000 2020

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