Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 12, Problem 20P
Summary Introduction
Interpretation:
Representation of rocks.
Concept Introduction: Lean operation is a process in which a business should focus on continuous improvement with minimum resources and elimination of wastage. It is a process which is adopted by businesses to work efficiently and wastage must be reduced to the maximum level. Its main focus is to create customer satisfaction and eliminate implicit cost. Its principal is to smoothen the manufacturing process so that the operation of the business can be efficiently done. Moreover, the delegation of work is important rather than having a workload at the same team so that perfection can be attained.
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The Northridge Company tends to keep the inventory low. At the same time, it is important to respond to demand quickly, since a customer who wants a product K is very likely to get one from a competitor if Northridge Company doesn’t have one available immediately. Northridge Company’s current policy to produce the product K is to produce 100 per week, which is the average demand. Even this is a problem, as the production manager has pointed out, since the equipment is also used for other products and the lot size of 300 would be much more efficient. He said he is currently set up the production for product K for the next week and states that he has capacity available to produce 300 at a time next week.
The following lists the forecasts and actual customer orders for the next 12 weeks.
Week
1
2
3
4
5
6
7
8
9
10
11
12
Forecast
90
120
110
80
85
95
100
110
90
90
100
110
Customer Orders
105
97
93
72
98
72
53
21…
Once issued, the purchase order becomes the basis for managing the purchasing relationship on an
ongoing basis
True
False
There is high utilization of inventory in chase approach
O a.
True
O b. False
Chapter 12 Solutions
Practical Operations Management
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4P
Ch. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Prob. 10PCh. 12 - Prob. 11PCh. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21PCh. 12 - Prob. 22PCh. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Prob. 27PCh. 12 - Prob. 1.1QCh. 12 - Prob. 1.2QCh. 12 - Prob. 1.3QCh. 12 - Prob. 1.4QCh. 12 - Prob. 2.1QCh. 12 - Prob. 2.2QCh. 12 - Prob. 2.3QCh. 12 - Prob. 3.1QCh. 12 - Prob. 3.2QCh. 12 - Prob. 3.3Q
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