Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 13, Problem 40P
Demand for rug-cleaning machines at Clyde's U-Rent-It is shown in the following table. Machines are rented by the day only. Profit on the mg cleaners is $10 per day. Clyde has four mg-cleaning machines.
a. Assuming that Clyde's stocking decision is optimal, what is the implied range of excess cost per machine?
b. Your answer from part a has been presented to Clyde, who protests that the amount is too low. Does this suggest an increase or a decrease in the number of rug machines he stocks? Explain.
c. Suppose now that the $10 mentioned as profit is instead the excess cost per day for each machine and that the shortage cost is unknown. Assuming that the optimal number of machines is four, what is the in1plied range of shortage cost per machine?
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Problem 16-16 (Algo)
The McDonald's fast-food restaurant on campus sells an average of 7,200 quarter-pound hamburgers each week. Hamburger patties
are resupplied twice a week, and on average the store has 795 pounds of hamburger in stock. Assume that the hamburger patties
cost $4 a pound and there are 52 weeks in a year.
a. What is the Inventory turnover for the hamburger pattles? (Round your answer to 2 decimal places.)
Inventory turnover ratio
per year
b. On average, how many days of supply are on hand? (Do not round Intermediate calculations. Round your answer to 2 decimal
places.)
Average days of supply
Corral Cartage leases trucks to service its shipping contracts. Larger trucks have cheaper operating costs if there is sufficient business, but are more expensive if they are not full. CC has estimates of monthly shipping demand. What comparison method(s) would be appropriate for choosing which trucks to lease?
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Chapter 13 Solutions
Operations Management
Ch. 13 - What are the primary reasons for holding...Ch. 13 - What are the requirements for effective inventory...Ch. 13 - Briefly describe each of the costs associated with...Ch. 13 - What potential benefits and risks do RFID tags...Ch. 13 - Prob. 5DRQCh. 13 - Prob. 6DRQCh. 13 - a. List the major assumptions of the EOQ model. b....Ch. 13 - Explain briefly how a higher carrying cost can...Ch. 13 - What is safety stock, and what is its purpose?Ch. 13 - Prob. 10DRQ
Ch. 13 - What is meant by the term service level? Generally...Ch. 13 - Describe briefly the A-B-C approach to inventory...Ch. 13 - The purchasing agent for a company that assembles...Ch. 13 - Explain how a decrease in setup time can lead to a...Ch. 13 - What is the single-period model, and under what...Ch. 13 - Can the optimal stocking level in the...Ch. 13 - Prob. 17DRQCh. 13 - What trade-offs are involved in each of these...Ch. 13 - Who needs to be involved in inventory decisions...Ch. 13 - How has technology aided inventory management? How...Ch. 13 - To be competitive, many fast-food chains began to...Ch. 13 - As a supermarket manager, how would you go about...Ch. 13 - Sam is at the post office to mail a package. After...Ch. 13 - Give two examples of unethical conduct involving...Ch. 13 - Prob. 1PCh. 13 - a. The following table contains figures on the...Ch. 13 - A bakery buys flours in 25-pound bags. The bakery...Ch. 13 - A large law firm uses an average of 40 boxes of...Ch. 13 - Garden Variety Flower Shop uses 750 clay pots a...Ch. 13 - A produce distributor uses 800 packing crates a...Ch. 13 - A manager receives a forecast for next year....Ch. 13 - A food processor uses approximately 27,000 glass...Ch. 13 - The Friendly Sausage Factory (FSF) can produce hot...Ch. 13 - A chemical firm produces sodium bisulfate in...Ch. 13 - A company is about to begin production of a new...Ch. 13 - Prob. 12PCh. 13 - A mail-order house uses 18,000 boxes a year....Ch. 13 - A jewelry firm buys semiprecious stones to make...Ch. 13 - A manufacturer of exercise equipment purchases the...Ch. 13 - A company will begin stocking remote control...Ch. 13 - A manager just received a new price list from a...Ch. 13 - A newspaper publisher uses roughly 800 feet of...Ch. 13 - Given this information: Expected demand during...Ch. 13 - Given this information: Lead-time demand = 600...Ch. 13 - Demand for walnut fudge ice cream at the Sweet...Ch. 13 - The injection molding department of a company uses...Ch. 13 - A company uses 85 circuit boards a day in a...Ch. 13 - One item a computer store sells is supplied by a...Ch. 13 - The manager of a car wash received a revised price...Ch. 13 - A small copy center uses five 500-sheet boxes of...Ch. 13 - Ned's Natural Foods sells unshelled peanuts by the...Ch. 13 - Regional Supermarket is open 360 days per year....Ch. 13 - A service station uses 1,200 cases of oil a year....Ch. 13 - Caring Hospital's dispensary reorders doses of a...Ch. 13 - A drugstore uses fixed-order cycles for many of...Ch. 13 - Prob. 32PCh. 13 - Prob. 33PCh. 13 - Demand for jelly doughnuts on Saturdays at Don's...Ch. 13 - A public utility intends to buy a turbine as part...Ch. 13 - Skinner's Fish Market buys fresh Boston bluefish...Ch. 13 - A small grocery store sells fresh produce, which...Ch. 13 - Demand for devil's food whipped-cream layer cake...Ch. 13 - Prob. 39PCh. 13 - Demand for rug-cleaning machines at Clyde's...Ch. 13 - A manager is going to purchase new processing...Ch. 13 - A Las Vegas supermarket bakery must decide how...Ch. 13 - Offwego Airlines has a daily flight from Chicago...Ch. 13 - UPD Manufacturing produces a range of health care...Ch. 13 - Prob. 1.2CQCh. 13 - Prob. 2.1CQCh. 13 - Grill Rite is an old-line company that started out...Ch. 13 - SARAH LUBBERS AND CHRIS RUSCHE, GRAND VALLEY STATE...Ch. 13 - SARAH LUBBERS AND CHRIS RUSCHE, GRAND VALLEY STATE...Ch. 13 - Prob. 4.3CQCh. 13 - SARAH LUBBERS AND CHRIS RUSCHE, GRAND VALLEY STATE...Ch. 13 - Prob. 4.5CQCh. 13 - Prob. 1OTQCh. 13 - Prob. 2OTQCh. 13 - Prob. 3OTQCh. 13 - Prob. 4OTQ
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