Question 1 RIO BRAVO IV – Situational Analysis Strengths Weaknesses • Leading producer of Power & Signal distribution products • Not favoured by Foreign markets • High quality producers • Time limitations – hastily equipped facilities • High level of experience in the production of wiring harnesses & Electrical components • Inexperienced human talent in senior positions • Good housekeeping • Language barrier • No understanding of customer needs expectations • The quality of the product
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Zhou Bicycle Case Study Zhou Bicycle Company‚ located in Seattle‚ is a wholesale distributor of bicycles and bicycle parts. Formed in 1991 by University of Washington Professor Yong-Pia Zhou‚ the firm’s primary retail outlets are located within a 400-mile radius of the distribution center. These retail outlets receive the order from ZBC with 2 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
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with a standard deviation of 400 units. The cost of lacing an order is $100‚ and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.65 per unit. To provide a 98 percent service probability‚ what must the reorder point be? Suppose that the production manager is told to reduce the safety stock of this item by 100units. If this is done‚ then what will the new service probability
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12.13 ABC D ata f or Problem 3 3.75 calculators 2 calculators a. What is t he Economic O rder Q uantity? b. What is the t otal a nnual o rder a nd i nventoryholding costs for the EOQ? c. What is t he reorder p oint w ithout s afety stock? d. Whatis the reorder point with safety stock? e. Based o n t he previous information‚ s hould a fixed o rder q uantity be placed‚ a nd i f so‚ for h ow m any c alcula to rs ? 7. Crew Soccer Shoes Company is considering a change o f their
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analysis for Consolidated Electric. Under favour of the method of order-point‚ the economic order quantity (EOQ) formula need to be used that the demand rate should be stable‚ repeater and recognized. Lead Time not ought to diversify‚ cost of item would stable without discounts‚ and ordering is done in batches. The EOQ model decreases the total cost of holding as well as the ordering costs. Determinants of the Reorder point are the rate of demand‚ the lead time‚ safety stock and demand or lead time
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of safety stock‚ and the reorder point for aluminum ingots assuming there is a 1-week lead time and the firm would like a safety stock of 3%. | | | | | | | | | | Economic Order Quantity = | √2 x current use x order cost / carry cost per unit per year = | | | | | √2 x 3‚000 x 5‚000 / 75 = | 632.46 | per order | | | | | | | | | | Ingots of aluminum per day = | 3000/365 = | 8.22 | ingots | | | | Reorder point = | 8.22*7 = | 57.40 |
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value after the lab shuts down. Marketing has sketched the expected demand trend shown in Figure 1. Figure 1 Although marketing is confident of the rough shape of demand‚ there is not enough marketing data to predict the actual peak demand at this point. It will depend on how fast demand starts growing after day 60. Management’s main concern is managing the capacity of the lab in response to the complex demand pattern predicted. Delays resulting from insufficient capacity would undermine LL’s promised
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Thompson Telescopes Ltd Alan Harrison ● Introduction Thompson Telescopes Ltd is a division of Murray Engineering. It was formed following the acquisition of a US company by Murray’s parent group‚ the large conglomerate‚ PH Holdings plc. Initially‚ Thompson acted as the UK sales arm‚ and marketed a range of standard telescopes for amateur astronomers and clubs. Telescopes were manufactured in the USA and sold via the UK company to markets in Europe‚ the Middle East and Africa (EMEA). However‚ customers
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distribution centers. However‚ if an order is out of stock‚ ZBC does not fulfill the order; they lose the business. This results in the retailers using other distributors. With the information provided‚ we hope to develop an inventory plan‚ discuss ZBC’s reorder point along with the total cost‚ and lastly address the demand that is not the level of the planning horizon. This will help ZBC maintain its 9.5% service level and minimize the losses. The inventory plan is based on the following values and model:
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CASE: Hewlett-Packard – Supplying the DeskJet Printer in Europe – Teaching Note First review the Reorder Point model and the Equal Order Period model (this could be done on the day prior to when the DeskJet case is being discussed. It’s important that the average inventory calculations are covered‚ since this is no covered in the book.) Let’s use some different numbers‚ just for another problem example. d = 20 units/day‚ std. dev. = 4 unit/day L = 10 days 96% confidence Q = 600 units ROP
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