Safety stock Essays & Research Papers

Best Safety stock Essays

  • Safety Stock - 1192 Words
     Safety Stock James Pappas Logistics Management and Operations, TLMT 353, Spring 15 American Public University Professor Ernest Hughes 15 June 2015 Safety Stock Safety stock is the parts buffer a business builds into the production line to ensure the through put is not interrupted. Running a successful business means ensuring customer satisfaction to the fullest extent possible. Time is a vital resource in business and not something that the consumer wants to...
    1,192 Words | 4 Pages
  • Safety Stock and Maximum Lead Time
    Managing Customer Responsiveness at Littlefield Labs Background Littlefield Laboratories (LL) has opened another lab. The new lab uses the same process as the lab in the assignment “Capacity Management at Littlefield Labs” — neither the process sequence nor the process time distributions at each machine have changed. On day 0, the lab began operations with three preparers, one tester, and one centrifuge, and an inventory of 160 test kits. This left the lab with $1,000,000 in reserves. Customer...
    831 Words | 3 Pages
  • Hiram Miller Case Study
    I. Basic Problem The Hiram Miller Office Products Division does not have an adequate main warehouse facility to support the operations of their business. This is seen throughout the company causing problems with inventory levels, shipping/receiving, and workforce levels. Both the available space outside the warehouse and the building itself are significant problems. II. Support for the Basic Problem Insufficient dock space had more than one second order causal problem. Demurrage and...
    555 Words | 2 Pages
  • Littlefield Technologies - 809 Words
    Stanford University Graduate School of Business rev. August 2004 Managing Customer Responsiveness at Littlefield Technologies Background Littlefield Technologies (LT) has developed another DSS product. The new product is manufactured using the same process as the product in the assignment “Capacity Management at Littlefield Technologies” — neither the process sequence nor the process time distributions at each tool have changed. On day 0, the factory began operations with three stuffers,...
    809 Words | 3 Pages
  • All Safety stock Essays

  • Littlefield Technologies Simulation: Batch Sizes
    Littlefield Simulation 2: Occupylittlefield With our second littlefield simulation complete, we have reinforced many of the concepts and lessons learned in class. We had a better understanding of the operation of the littlefield facility and how certain modifications would affect the throughput and lead time. Though we are pleased with our final results compared to the rest of the class, we see there is still room for improvement. We made many mistakes, but most importantly we have learned...
    501 Words | 2 Pages
  • Capacity Management At Littlefield Technologies 1
    Stanford University Graduate School of Business April 29, 2009 * * Managing a Short Product Life Cycle at Littlefield Labs Background In early January, Littlefield Labs (LL) opened its first and only highly automated lab to test blood samples. LL receives the samples from local hospitals and clinics and processes the samples using disposable kits. After 360 days of operation the lab will cease operations, shut down, and dispose of any remaining kit inventories. Neither capacity nor inventory...
    1,089 Words | 5 Pages
  • Business Operations Essay on Becks Plc
    BECK’S Plc.: THE PHARMACEUTICAL COMPANY Reported by: Vijay Sharma (1102546) Thomas Dunne (1101782) BECK’S Plc.: THE PHARMACEUTICAL COMPANY Reported by: Vijay Sharma (1102546) Thomas Dunne (1101782) Operational Analysis Operational Analysis Table of contents: Introduction……………………………………………………………………………………………………. Classifying the operations process type and process layout Production Policy…………………….………………………………………… Management of materials...
    3,474 Words | 15 Pages
  • Littlefield Technologies: Overview of the Game
    Littlefield Technologies: Overview of the Game Littlefield Technologies is a bank… Or it is a hospital clinic, or it is an accountant team that processes tax returns, or it is a laboratory analyzing blood samples, or it is your student team doing a team assignment? The point is, you can imagine it to be anything you like – almost everything we do involves the completion of a number of process steps. The Littlefield system involves four process steps, involving three resource types (in the game,...
    8,258 Words | 22 Pages
  • BARILLA SpA (A) Case Report
    Executive Summary In 1987, Brando Vitali, then Barilla’s director of logistics, had proposed an alternative approach to order fulfillment. Vitali envisioned an approach that would radically change the way in which logistics organization managed product delivery by introduction of Just In Time Distribution (JITD) system. The JITD system is designed to mitigate Barilla’s high stock rates, fluctuating demands by distributors and stock outs. As the incumbent logistics director, -Giorgio...
    1,403 Words | 5 Pages
  • Zhou Case - 546 Words
    BMGT524-1900-Global Operations Management 1) Develop an inventory plan to help ZBC. We will use EOQ Formula in order to derive some data for estimates. Annual demand = D = 439 Cost of Bicycle at whole sale (C) = 0.60*170 = $102 Carrying cost (H) = 12% of cost = 102 *.12 = 12.24 Ordering cost (S) = $65 per order Lead time = 4 weeks Re order point = ROP = daily demand x lead time (days) = 439/365 * 28 = 33.67 EOQ Formula Order quantity Q =...
    546 Words | 3 Pages
  • Procurement Simulation - 2331 Words
    Table of Contents Consensus versus Average Forecasting 1 Options 1 Demand Forecast 1 Supplier Selection 2 Change Orders 3 Lessons 3 Appendix A: Simulation Comments 4 Appendix B: Simulation Results 6 Consensus versus Average Forecasting The consensus forecasts worked well for quick insight into estimated demand for each month. In our first year we used the consensus demand because we did not know the dynamics of the group, and we were relying on their expertise to guide us...
    2,331 Words | 7 Pages
  • Answerset 5std - 1566 Words
     MGMT 405 Operations and Production Management Answer set 5 (Reference chapters 12– William J. Stevenson-2007, ninth edition) Problems 1. The manager of an automobile repair shop hopes to achieve a better allocation of inventory control efforts by adopting an ABC approach to inventory control. Using the following monthly usage and classify the items in A, B, and C categories according to dollar usage: Item Usage Unit Cost 4021 50 $ 1400 9402 300 12 4066 40 700 6500 150 20 9280 10 1020 4050 80...
    1,566 Words | 12 Pages
  • Littlefield Executive Summary - 795 Words
    Production Planning and Inventory Control CTPT 310 Littlefield Simulation Executive Report Arlene Myers: 260299905 Rubing Mo: 260367907 Brent Devenne: 260339080 Miyaoka Scenario, Re: Littlefield Technology Simulation Game: Inventory Management Executive Summary At the onset of the game, we determined there were a few key things that had to be addressed to succeed. The first was to avoid stock outs which had already occurred in the first 50 days. We quickly moved to avoid stock...
    795 Words | 3 Pages
  • 12 bright - 6265 Words
    MIT Leaders for Manufacturing Program H. C. Starck, Inc.1 1. The Arrival Tom Carroll was a Fellow in MIT's Leaders for Manufacturing Program. On June 1st, 1999, after completing a difficult academic year, Tom arrived at H.C. Starck, Inc. to start on his six-month internship. He knew that his work would involve reducing lead times, but did not know any specifics. His first meeting was with Lee Sallade, Director of Operations. Figure 1 presents an abbreviated organizational chart for...
    6,265 Words | 64 Pages
  • Barilla Spa - Executive Summary
    EXECUTIVE SUMMARY Barilla SpA, world’s largest manufacturer of pasta based in Italy is experiencing extreme demand variability resulting to operational inefficiency and increased cost. To combat the key issues stated my decision is to implement the Just In Time Distribution (JITD). This new system, contrary to current system Barilla has will eliminate Bullwhip effect and stock outs by having centralized information, there will be data transparency between Barilla and distributors. Distributors...
    1,126 Words | 4 Pages
  • btec unit 1 p4
    Physical resources include: Premises Location Storage facilities – e­commerce Buy or rent? Plant, Machinery and Equipment When to purchase Buy or lease? Materials and Stocks Efficient purchasing Just – in – Case Stock Control Just – in – Time Stock Control © Business Studies Online: Slide 1 Premises: Location The Choice of location will depend upon the type of business being set up: Local estate agents can give details of costs and availability of business premises Offices E.g....
    646 Words | 3 Pages
  • Supply Chain Management Tutorial3
    1. Safety inventory is inventory carried for the purpose of satisfying demand that exceeds the amount forecasted for a given period. Safety inventory is carried because demand forecasts are uncertain and a product shortage may result if actual demand exceeds the forecast demand. 2. Lead times serve to magnify the increase in variability due to demand forecasting. Therefore, lead time reduction can significantly reduce the bullwhip effect throughout a supply chain. Lead times typically...
    1,045 Words | 4 Pages
  • Littlefield Simulation Report - 1533 Words
    Executive Summary Our team operated and managed the Littlefield Technologies facility over the span of 1268 simulated days. Our team finished the simulation in 3rd place, posting $2,234,639 in cash at the end of the game. We did intuitive analysis initially and came up the strategy at the beginning of the game. And then we applied the knowledge we learned in the class, did process analysis and modified our strategies according to the performance results dynamically. We have reinforced many of...
    1,533 Words | 6 Pages
  • Sony de Mexico - 862 Words
    Case Study #3 Sony de Mexico It was a hot, dry afternoon in Mexico's northern Sonora Desert and Rey was in a sour mood. Rey Uribe, the nor¬mally energetic and optimistic president of Sony de Mexico, had just received the news that Sony's Mexican operations were to be shut down in a cost-cutting move. Corporate had decided that to remain competi¬tive, capacity should be shifted to Southeast Asia, where labor costs were a fraction of Mexico's fully bur¬dened hourly labor rates of $3.50. Of...
    862 Words | 3 Pages
  • Littlefield Technology - 1057 Words
    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...
    1,057 Words | 5 Pages
  • Value stream mapping tools
    The article speaks about the seven value stream mapping tools. I would start by saying Value Stream Mapping is a tool that can be used in minimising waste in manufacturing. Wastes in manufacturing have been grouped into seven and they are overproduction, waiting, transport, inappropriate processing, unnecessary inventory, unnecessary motion and defects. It is common practice to reword these wastes so they become relevant to the type of industry seeking to define and eliminate waste. In the...
    717 Words | 3 Pages
  • Sport Obermeyer Case Report
    Sport Obermeyer – Case Report Module One, Session Six Supply Chain Inventory Management Darcy Shannon October 27, 2010 Sport Obermeyer – Case Report Executive Summary In order to minimize the degree of stock outs, and markdowns, I have decided for the initial Hong Kong order to produce those products that have the smallest standard deviation when comparing the Buying Committee Forecasts. An attempt will also be made to purchase the lowest cost items within this group, as initial order size...
    1,294 Words | 5 Pages
  • Little Field - 1525 Words
    Initial Analysis Application of Little’s Law: The data for the first 50 days indicated that: No. of Jobs arrived till date = 153. No. of Completed Jobs = 152 Since there were no jobs in the order queue, the inventory of the system, taken as a whole, was 1 i.e. 60 kits in total. This number included the kits waiting in the machine queues and jobs that are currently being processed on the machines. The average arrival rate of the jobs per day was 3.06. This was taken as the initial throughput...
    1,525 Words | 5 Pages
  • Sales and Inventory - 2595 Words
    2. PROJECT DESCRIPTION 3.1. Problem Statement How to design, develop and implement a Computerized Sales and Inventory System with DSS for Haldimand Auto Supply that will improve their business operation? Haldimand Auto Supply is working under manual method that causes the customer dissatisfaction. Just to make sure that there’s no customer will come back to the store complaining for miscomputation, the personnel consume more time in re-computing the total purchased. They also encounter...
    2,595 Words | 8 Pages
  • Contrast the Significance of the Term Lead Time in the Traditional Eoq Context and in an Mrp System.
    Question 1 - Contrast the significance of the term lead time in the traditional EOQ context and in an MRP system. In the traditional context, lead time is fixed—either as a discrete time or as a probability distribution. Such lead time constancy or variation is outside of the inventory model. Lead time in an MRP system is assumed to be a variable. While specific lead times are stated for planning purposes, these times may be speeded up or delayed as conditions warrant. Indeed, it is this...
    2,741 Words | 8 Pages
  • Case Study - 990 Words
    Case Summary: This case is about Mini Motor Homes Manufactured by Jim Ballenger in Kalamazoo, Michigan. According to the case, Jim Ballenger has a problem to make a decision to change his current inventory system to JIT system. From the current inventory system, Jim has spent a lot of cost on his inventory system. This is because mostly of the component used in manufactured are bought from other vendor and his company actually only manufactured very few of it component. Because of this, the...
    990 Words | 3 Pages
  • Zara: Retail @ the Speed of Fashion
    MAYUR S. JAGTAP BVIMSR, MMS 2ND Yr. (OPERATIONS) GROUP II DATE: 6/10/10 ZARA: RETAIL @ THE SPEED OF FASHION CASE STUDY Q.1.How does ZARA manages more styles? Ans: - Zara's success from the perspective of time-based competition. While most of people attribute Zara's time-based success to its extremely short lead time and regard Zara as a benchmark for speed Managing more styles is possible for Zara mainly because of the shorter lead time (2-4 weeks) compared to industry average...
    905 Words | 4 Pages
  • Barilla Spa (a) - 1932 Words
    BARILLA SpA (A) Table of Contents Part One: Executive Summary 3 Part Two: Immediate Issue 4 Part Three: Systemic Issues 4 Part Four: Qualitative Analysis 5 Part Five: Alternatives 6 Part Six: Recommendation 8 Part Seven: Recommendations Implementation Plan 9 Part Eight: Monitor and Control 10 Part One: Executive Summary In order to respond to extreme demand variability and incidents of high stock out rates Barilla is currently applying pressure to both its’ manufacturing and...
    1,932 Words | 6 Pages
  • Littlefield Technologies: Overview - 1769 Words
    Stanford University Graduate School of Business September 2007 Littlefield Technologies: Overview Introduction Littlefield Technologies is a job shop which assembles Digital Satellite System receivers. These receivers are assembled from kits of electronic components procured from a single supplier. The assembly process consists of four steps carried out at 3 stations called board stuffing, testing and tuning. The first step consists of mounting the components onto PC Boards and...
    1,769 Words | 6 Pages
  • Physical Resources In a Business - 767 Words
    Physical Resources Resources Physical resources include: Premises Location Storage facilities – e­commerce Buy or rent? Plant, Machinery and Equipment When to purchase Buy or lease? Materials and Stocks Efficient purchasing Just – in – Case Stock Control Just – in – Time Stock Control © Business Studies Online: Slide 1 Premises: Location Location The Choice of location will depend upon the type of business being set up: Offices Shops ...
    767 Words | 7 Pages
  • Case Study - 817 Words
    Case Name: Eagle Manufacturing I. Major Facts Ted Jones, supply manager, has been working in his position for two years and during this time it has been a challenge. The supply management function was operating well with a team of professionals. The function has been challenged with focusing on other functions verses the strategic function of supply management. Ted’s department has been operating in a react mode instead of a proactive mode most of the work day recently. Ted...
    817 Words | 3 Pages
  • Mcdonald - 296 Words
    This higher quality customer serv ice is subject to McDonald's ability to actually produce faster. Without this ability , McDonald's ordering costs would be sky -high because the costs associated with ordering would be the loss of customers tired of ordering fast food that really isn't fast. Second, JIT allows McDonald's to adapt to demand a little bit better. Seemingly , lower inv entory lev els would cause McDonald's bigger problems in a higher demand because they wouldn't hav e their safety...
    296 Words | 1 Page
  • Narragansett Yacht Company - 1780 Words
    1. What is the economic order quantity for standard 5-inch winches if they are ordered from (a) Supplier A, and (b) Supplier B? Round your answers up to the next whole unit, because Narragansett cannot order a fraction of a winch. EOQ = square root of ( 2 x R x A) V x W R = annual demand is 1500 units A = ordering cost is $1,000 for Supplier A and $500 for Supplier B V = cost per unit is $300 W = carrying cost percentage is 23%...
    1,780 Words | 7 Pages
  • customer responsiveness - 2017 Words
    Customer Responsiveness Problem: Littlefield realized that they can increase revenue with a faster turn-around by shipping orders in half a day, but the factory is not producing at that level. If Littlefield charged higher prices customers would pay for dramatically shorter lead times, however, management is currently unwilling to quote shorter lead times because historic lead times often extend into several days. The consulting team was brought in to help Littlefield shorten lead times so...
    2,017 Words | 6 Pages
  • Standard Deviation and Probability - 514 Words
    A business graduate very much wants to get a job in any one of the top 10 accounting firms. Applying to any of these companies requires a lot of effort and paperwork and is therefore costly. She estimates the cost of applying to each of the 10 companies and the probability of getting a job offer there. These data are tabulated below. The tabulation is in the decreasing order of cost. 1. If the graduate applies to all 10 companies, what is the probability that she will get at least one...
    514 Words | 2 Pages
  • Inventory Management - 512 Words
    Inventory management involves the management of stock. The aim of inventory management is to prevent stock outs and have smooth flow of goods. The stock can be classified as working/cycling stock; demand based, safety/buffer stock; allowing to absorb unexpected fluctuation in demand, speculative stock; anticipates problems with in the supply channel. When dealing with stock all of these come into play and question can be asked hold or not hold stock. When holding stock it could be because of...
    512 Words | 2 Pages
  • OPNS D30 HW 2
    OPNS D30 Operations Management - Problem Set # 2 Problem 1 Daily demand for the ice creams at WJ’s parlor is normally distributed with a mean of 100 kilograms and a standard deviation of 30 kilograms. The owner has the ice cream supplied by a wholesaler who charges $8 per kilogram. The wholesaler charges a $90 delivery charge independent of order size. The opportunity cost of capital to WJ’s parlor is estimated to be 25% per year. Assume 360 days in the year. a. What is the optimal order size...
    419 Words | 2 Pages
  • Sport Obermeyer - 3317 Words
    Executive Summary In order to address long lead times and a high inventory count with uncertain demand, I have decided for the initial Hong Kong order to produce those products that have the smallest standard deviation when comparing the Buying Committee Forecasts. An attempt will also be made to purchase the lowest cost items within this group as initial order size of 10,000 units allows. Combined, this will allow for the least amount of risk when using the limited information we have for...
    3,317 Words | 11 Pages
  • styro case - 1110 Words
     The focus of this assignment is the comparison among the three simulations (batch of 8, batch of 4, and single price flow). While watching the 3 Styro case movies provided, we needed to analyse and compare the differences among the three simulations. There are several elements to just in time manufacturing that are crucial to the successful implementation of this new manufacturing. These elements are; Group technology, Process control quality, JIT, Uniform factory load, Pull through...
    1,110 Words | 3 Pages
  • Skill Mgt - 265 Words
    MGT 203 Skill Builder Exercise #4 Student Name ______________. Problem 1: (50 points) An ophthalmologist’s office operates 52 weeks per year. It purchases disposable contact lenses for $11.70 per pair. The following information is available about these lenses. Demand = 90 pairs/week Order cost = $54/order Annual holding cost = 27% of purchasing cost Desired cycle-service level = 80% Lead time = 3 weeks Standard deviation of weekly...
    265 Words | 2 Pages
  • Key Performance Indicators (KPIs)
    Key Performance Indicators (KPIs) Key Performance Indicators (KPIs) are quantitative and qualitative measures used to review an organization’s progress against its goals. These are broken down and set as targets for achievement by departments and individuals. The achievement of these targets is reviewed at regular intervals. KPIs are used to monitor the performance of a company, department, process or even an individual machine. They will also help shape the behaviors of employees within...
    1,229 Words | 6 Pages
  • Beer Game Paper - 502 Words
     1- What are the benefits of communication: (20 points) • between levels (/retailer/OEM/warehouse/factory)? Students, playing the Beer Game for the first time, are typically enthusiastic about feeling the effects of insufficient coordination so drastically. • within levels (logistics/planner) in the supply chain? Different players who all know the demand distribution, manage the different stages of the channel. The interface was designed to help us visualize the material and...
    502 Words | 2 Pages
  • For Sale Magnets, Inc. Fmsi Mba Case
    Question 1: Was taking on the large and powerful companies the right thing to do? Ultimately, firms enter markets to compete for market share and grow their bottom line. Marly saw the opportunity for growth and went for it. However, FSMI has no experience with large customers. The best option to address the experience issue would be to take on one major customer and learn the ins and outs of what it takes to satisfy their demand. Then, once FSMI is able to accommodate that customer, they...
    1,124 Words | 3 Pages
  • Barilla Spa - 668 Words
    Barilla SpA was founded in 1875 by Pietro Barilla and has evolved into a large, vertically integrated corporation with flour mills; pasta and bakery factories located throughout Italy and is a global leader in producing and selling a multitude of these goods. Review of this case study shows a core problem of weekly demand fluctuations in the distribution order patterns which impacted manufacturing and other chains in the system. The fluctuations brought increasing operational inefficiency and...
    668 Words | 2 Pages
  • Littlefield 2 - 749 Words
    Littlefield Simulation II Based on our success in the last Littlefield Simulation, we tried to utilize the same strategy as last time. Our goals were to minimize lead time by reducing the amount of jobs in queue and ensuring that we had enough machines at each station to handle the capacity. We wanted to keep the lead time between .5 and 1 day in order to get the maximum amount of revenue per job. We utilized data from the first 50 days and put it in an Excel chart to forecast the demand for...
    749 Words | 2 Pages
  • RMG sector In Bangladesh - 2627 Words
     Growth of RMG Sector in Bangladesh Prepared by Tasnia Tajin 12364046 Tasnim Khanam Alis 12364048 Course Name: Managerial Economics (Microeconomics) Course ID: ECO 501 Submitted to Dr. Sayera Younus Date: 14. 12. 2012 Contents 1. Abstract 2. Introduction 3. History 4. An Overview of the Bangladesh Ready Made Garment Industry 5. Growth of RMG industry in Bangladesh 6. Reasons behind the Growth of RMG Industry in Bangladesh 7. Challenges faced by the RMG...
    2,627 Words | 13 Pages
  • Hp Deskjet Case - 526 Words
    1. INVENTORY/SERVICE CRISIS FOR HP DESKJECT PRINTERS There are a number of causes of the inventory/service crisis described in HP: • The first cause was the demand variability of printers. For example, the demand for model A in Europe had the monthly standard deviation of 32.4 while the monthly mean was 42.3. Combined with increasing pressure from resellers that forced HP to offer the resellers flexible distribution, fluctuations in demand resulted in the high levels of safety stocks and...
    526 Words | 2 Pages
  • Gms 805 Study Notes. Chapter 8
    A framework for Production Activity Control 1) Production Activity Control (PAC) concerns the execution of material plans. [Back end] • Activities that fall partly or completely within the realm of Production Activity Control:  Shop-floor Scheduling and Control (SFC)  Vendor scheduling and Follow-up  Order, Release and Purchasing ( procurement) In purchasing, procurement is professional activity where info networks, relationships, terms and conditions are established with vendor...
    995 Words | 5 Pages
  • Narragansett Yacht - 483 Words
    1. What is the economic ordering quantity for standard 5-inch winches if they are ordered from (a) Supplier A, and (b) Supplier B? Round your answers up to the next whole unit, because Narragansett cannot order a fraction of a winch. What assumptions are implied in the EOQ model? Do these assumptions appear reasonable when applied to Narragansett Yacht? How many orders should be placed each year if Narragansett buys from Supplier A? If the firm buys from Supplier B? What is the reorder...
    483 Words | 2 Pages
  • Bmw: the 7 Series Case Study
    BMW: The 7 Series 1. What are the causes and consequences of BMW’s quality problems with newly launched products? What should be done to improve “launch quality”? The causes and consequences of BMW’s quality problems with newly launched products were plentiful and apparent all throughout the case study. For instance, BMW does not use pre-production tools during prototyping. This significantly lowers their opportunity to discover and fix quality problems earlier in the production process....
    851 Words | 3 Pages
  • Supply Chain Management - 1921 Words
    ndex 1. What has caused the so-called Inventory/Service "Crisis"? 1 2. What are the important "drivers" of safety stock? 2 3. Recommend quantitative target inventory levels for the six European options, assuming a weekly periodic review replenishment. 4 4. Assuming a 20% gross margin for each printer, sea transportation costs of $1 per printer and air transportation costs of $10 per printer (air shipment lead-time is three days), evaluate the various alternatives available to Brent...
    1,921 Words | 7 Pages
  • Barilla Case Study - 3429 Words
    Barilla SpA * The spaghetti incident - Maastricht University School of Business and Economics International Executive Master of Finance and Control 20 April 2012 Course – Logistics Prof. Dr. Allard van Riel Pauline Henselmans Jetse van de Kamp Ze Zhu Thiago Barros de Oliveira Rene Lorrier Contents 1. Reasons for the increase in variability in demand in Barilla’s supply chain 3 1.1 Distributed inventories, local optimization 3 1.2 Lack of inventory information...
    3,429 Words | 11 Pages
  • Materials Cost Management and Control
    MATERIAL COSTING & CONROL BY BUKENYA MOSES Lecturer, Makerere University Business School-MUBS. MSc. Accounting & Finance-Mak BCom-Accounting-Hons, ACCA Level II, Email: mbukenya@mubs.ac.ug or mosesbukenya@yahoo.com Mobile Phone contact: +256772881525 MUBS EMBA MAC by Moses Bukenya OUTLINE: Students should be able to understand 1. AIM/purpose/objectives of principles of material Materials cost management. 2. Basic management 3. Procurement cycle 4. Relevant control documents 5....
    1,580 Words | 7 Pages
  • Chicken Run - The Poultry supply chain
    Question 1 How might Wings and Legs combine a lean and agile approach in its supply chain? The lean and agile paradigms, while particularly different, can be and have been joint within effectively designed and operated total supply chains. In the Wings and Legs case, cost is an important market winner and this is reduced by leanness. In the case of agility the key point is that Wings and Legs operate in an extremely volatile marketplace. Therefore the solution is to develop a hybrid supply...
    1,099 Words | 6 Pages
  • Merger - 1286 Words
    Topics Covered |Class |Title |Concepts |Tools | |11. | |Components of Demand |Moving Average | | |Forecasting |What/when to forecast |Exponential Smoothing | | | |Time Series...
    1,286 Words | 8 Pages
  • Little Field Round 2
    Initial Analysis After plotting the demand, we could tell that we were dealing with an uncertain demand, which had an average of 12 orders per day with a standard deviation of 3 orders. The current capacities of machine 1 and 3 were at 13 jobs per day and the capacity of machine 2 was 25 jobs per day. This was calculated by dividing the average demand by the average utilization of each machine, additionally, our average lead-time was 1 day with a standard deviation of .72. This meant that...
    1,841 Words | 5 Pages
  • Operation Managment - 293 Words
    Let us prepare an inventory system for EG151 exhaust gasket: First we sum up the gasket sales/demand for the 21 weeks that is given to us. This gives us a total of 2142 gaskets for 21 week period if we divide it by 21 we get average weekly sales of 102 gaskets. As the lead time for gaskets is two weeks we multiply this quantity by 2 and we get a figure of 204. We take a safety stock level of one week as this is the half of the lead time and we add this to the figure of 204 and we get a...
    293 Words | 1 Page
  • Barilla: Poor Forecasting by Retailers and Distributors
    Barilla is facing several problems throughout their supply chain, and also some problems internal to the company. The biggest problem is the fluctuating demand and the number of stock-outs that are occurring throughout the supply chain. Barilla is facing problems with the way that information is being passed up the supply chain, problems with promotions, internal problems, and problems with getting the entire supply chain onboard for change. Promotions and Sales Representatives: The sales...
    2,269 Words | 7 Pages
  • Barilla Spa Case - 537 Words
    The case begins with Giorgio Maggiali’s frustration with the fluctuations imposed on the company’s manufacturing and distribution system. He is the director of logistics at Barilla who has been working on the concept started Brando Vitali who was his predecessor. This was the Just-In-Time-Distribution (JITD) concept as an extension of the Just-In-Time Manufacturing concept developed at Toyota. This basically toyed with the idea of delivering its products to its distributors as per Barilla’s...
    537 Words | 2 Pages
  • Accg301 Week 5 Tutorial Answers
    Suggested answers of the tutorial questions EXERCISE 15.25 1 Safety stock: The lead time is one month, so the safety stock is equal to the difference between average monthly usage and the maximum usage in a month. Average monthly usage is 70 tonnes (840/12), and the maximum usage is 80 tonnes. Therefore, the safety stock is 10 tonnes (80 – 70). 2 Reorder point: The reorder point is 80 tonnes. This is the maximum amount of the chemical that would be used in a month, and this is...
    855 Words | 9 Pages
  • Economic Order Quantity and Cycle Service Level
    OPERATIONS MANAGEMENT B3401 ASSIGNMENT # 3 (Total 100 points) Due on Nov 16 2010 (Tuesday) (Write your name, student #, section # in which you are registered) Q1. (Total 20 points) The FS factory can produce wieners at a rate of 5,000 per day. FS supplies wieners to local stores at a steady rate of 250 per day. The cost of preparing the equipment for producing wieners is $22. Annual holding costs are 15 cents per wiener. The factory operates 300 days a year. Find: 1) The optimal total...
    470 Words | 2 Pages
  • ZBC Paper Final - 931 Words
     ZHOU BICYCLE COMPANY Operations Management Presentation In 1991, University of Washington professor Yong-Pia Zhou formed a wholesale bicycle distributor company. Located in Seattle Washington, Zhou Bicycle Company (ZBC) serves as distributor of bicycles and bicycle parts for retail outlets. Most of these retail outlets are within a 400 mile radius of the distribution center. ZBC’s major source of revenue is the AirWing model. This is also the most popular model. Using a single...
    931 Words | 4 Pages
  • basic supply chain practice questions
     Basics Exam 1. 1. Which of the following strategies produces the longest lead-time? a. Make to order b. Engineer to order c. Make to stock d. Assemble to order 2. Which of the following statements s true? a. A product layout creates longer lead-time than a process layout. b. There is less WIP inventory in a product layout. c. Overhead costs are higher n a product layout. d. Capital equipment costs are typically higher in a process layout. 3. The objective of maximising...
    1,578 Words | 8 Pages
  • Barilla Spa Case Study.
    Najib abdi DSCI 434 3/24/2011 Barilla SpA Case Study 1. Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits and drawbacks of this program? One of the underlying causes of the difficulties that the JITD program was created to solve was the effects of inconsistent demand that came from Barilla’s distributors. The extreme demand variation strained Barillas manufacturing and logistics, and made very hard for Barilla to meet...
    1,033 Words | 3 Pages
  • Case Study 2: Fauquier Gas Company
    Case Name: Fauquier Gas Company I. Major Facts: In this case study presented by Hood (n.d.), Fauquier Gas Company is up against a timeline to supply a new construction project in the works where agricultural land was being developed into residential and commercial use. Fauquier Gas Company is looking for supplier to help with building of 3 ½ miles of new gas pipe that will go online by beginning of September. The manager of supply management Mr. Murphy is having trouble getting any...
    901 Words | 3 Pages
  • Sport Obermeyer - 2883 Words
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