Formed in 1981 by cousins Ray Martin and Jim Pullin‚ the firm’s primary retail outlets are located within a 400-mile radius of the distribution center. These retail outlets receive the order from Martin-Pullin within two days after notifying the distribution center‚ provided that the stock is available. However‚ if an order is not fulfilled by the company‚ no backorder is placed; the retailers arrange to get their shipment from other distributors‚ and MPBC loses that amount of business. The company distributes
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often have you heard that during shopping trips? In many of these cases‚ what you have encountered are stores that aren’t doing a very good job of managing their inventories (stocks of goods being held for future use or sale). They aren’t placing orders to replenish inventories soon enough to avoid shortages. These stores could benefit from the kinds of techniques of scientific inventory management that are described in this chapter. It isn’t just retail stores that must manage inventories. In
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costs d. shortage costs 3. The level of inventory at which a new order should be placed is known as the a. lead time b. replenishment quantity *c. reorder point d. service level 4. A restaurant currently uses 62‚500 boxes of napkins each year at a constant daily rate. If the cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00‚ then the optimal order quantity (EOQ) for napkins would be a. 62‚500 boxes b. 10‚000 boxes *c. 5
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Otto’s Auto Parts Statistical Report Hansen Consulting proudly presents the following statistical information for Otto’s Auto parts. Statistics is a branch of mathematics that makes it possible for you to gain an edge over your competitors by providing a method for collection of data‚ and a way to summarize and quantify it to represent real world observations from which predictions can be made. Statistics also includes stochastic modeling‚ which is a powerful tool that incorporates random variables
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COMM 225: POM REVIEW PROBLEMS – TUTORIAL QUESTIONS Week Q1 (Ref: Q. 9-23‚ p413 of (Operation management: creating value along the Supply Chain)): The following table provides the information necessary to construct a project network and project crash data: Activity a b c d e f g h Predecessor a a b b c d‚ e Normal Times (Weeks) 16 14 8 5 4 6 10 15 Crash Times (Weeks) 8 9 6 4 2 4 7 10 Normal Costs Crash Costs $2000 $1000 $500 $600 $1500 $800 $3000 $5000 $4400 $1800 $700 $1300 $3000 $1600 $4500
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COMM 225: MIDTERM REVIEW QUESTIONS TOPIC: PROJECT MANAGEMENT Q 1.1: Kozar International‚ Inc. begun marketing a new instant-developing film project. The estimates of R&D activity time (weeks) for Kozar’s project are given in the table below. The project has two paths: AC-E-F and A-B-D-F. Assume the activity times are independent. a) What is the probability that the project will be completed between 35 and 45 days? b) If the time to complete the path A-B-D-F is normally distributed‚ what is the probability
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inventory. High Forecast error fluctuating demand ‚ schhols changing fabric & design on short notice Lack of systems to track w/h inventory in real time Basic products also available at department stores only 25% confirmed customer orders by April High Leftover Inventory High product variety 12000 SKU with over 5000 SKU for school Uniform School Uniform subject to fashion trends Michael’s high inventory level issues cannot be tackled by just implementing an information
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services & reduces waiting time - MUST have it when variability too wild - It could be too costly. Reasons to hold inventory: Safety Stock: Information Uncertainty & Supply/Dem& Uncertainty. Cycle/Batch Stock: Fixed Costs associated with batches‚ quantity discounts & trade promotions. Seasonal Stock: Seasonal Variability. Strategic Stock: Flooding/availability & acts as a sub for capacity. Cost of overstocking (Co)● liquidation‚ obsolescence‚ holding.Cost of under-stocking (Cu)● lost sales & resulting
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Sport Obermeyer 1 Sport Obermeyer’s Time Line and “Speculative” versus “Reactive” Production "NOW" Initial Forecast 9 months Feb … Oct 1992 … 1992 Design of 1993-94 Line. Las Vegas Revised Forecast 5 months Nov … Mar 1992 … 1993 5 months April … Aug 1993 … 1993 "Speculative" Production "Reactive" Production of 1993-94 Line of 1993-94 Line In Feb 1993‚ start design of 1994-95 line. “Speculative” Production 27 Months Sept 1993 Oct 1993 Nov 1993 8 months Dec Jan 1993 1994 Selling of
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Littlefield Technologies Game 2 Strategy – Group 28 1. CUSTOMER ORDERS AND ORDERS WAITING FOR MATERIAL: When considering the demand level and changes‚ we would configure a time series of that data using short range forecasting. Time series are important because they are often the drivers of decision models. Trend projection and regression analysis models will be used to forecast the future demand as the growth of the demand increases at a lower level‚ increases to a higher level‚ and then decreases
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