Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Question
Chapter 12, Problem 21P
Summary Introduction
Interpretation:
Representation of water and reason for lake drainage.
Concept Introduction:
Kanban system: Kanban card is an indicator used by various departments of a firm or a company to inform about the shortage of components being faced. It is a card that is used when raw material or any item is completely finished. The consumption team uses its kanban card only when its item is almost completely used up and the kanban card is used to give a signal to the production team for procurement of raw material and processing of it.
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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…
The sales department encourages its customers to forward the orders in any form, including mail, e-mail or fax. The sales clerk first converts these sales order into the standardised sales order. For this purpose, the sales representative requests the missing information, if any. When the order is received, the sales clerk checks the customer’s creditworthiness of the customer from his computer terminal. Sales clerk thinsk that checking the accounting record is not technical and he can perform these duties efficiently. Two years ago, the sales clerk requested the accounting department to provide him with a list of customers whose account receivables are written off. The sales clerk is still using thisinformation to check the creditworthiness of the customers. The sales clerk did not differentiate the new customers from the existing customers and he is using the same procedure to check the creditworthiness of the new customers. The customer’s order is rejected if the customer’s credit…
A finished goods inventory on average contains 10,000 units. Demand averages 1,500 units per week. Given that the process runs 50 weeks a year, what is the expected inventory turn for the inventory? Assume that each item held in inventory is valued at about the same amount.
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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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
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- A company processes feathers and ships them loose in a covered truck. The linehaul cost for an average shipment is $600, and the truck carries 2000 pounds offeathers. A bright new graduate has just been hired and has suggested that theyshould bale the feathers into 500-pound bales. This would make them easier tohandle and also allow them to be compressed into about one-tenth of the space theynow occupy. How many pounds of feathers can the truck now carry? What is thepresent line haul cost per pound? What will it be if the proposal is adopted?arrow_forwardDevelop a measure of risk to go along with the ordering policy. This measure should be quantifiable.arrow_forwardJitsmart is a retailer of plastic action-figure toys. The action figures are purchased from Tacky Toys, Inc., and arrive in boxes of 48. Full boxes are stored on high shelves out of reach of customers. A small inventory is maintained on child-level shelves. Depletion of the lower-shelf inventory signals the need to take down a box of action figures to replenish the inventory. A reorder card is then removed from the box and sent to Tacky Toys to authorize replenishment of a container of action figures. The average demand rate for a popular action figure, Agent 99, is 36 units per day. The total lead time (waiting plus processing) is 11 days. Jitsmart’s safety stocky policy variable, a, is 0.25. What is the authorized stock levelfor Jitsmart?arrow_forward
- Compare and contrast the concepts of order-to-cash cycle time and order cycle time.arrow_forwardIt has been theoretically and empirically generalized that Recency is always the most important factor for classification of customers in RFM analysis. True Falsearrow_forwardIn a large microelectronics plant, the assembly cell for circuitboards has a demand for 200 units an hour. Two feeder cellssupply parts A and B to the assembly cell (one A and one Bfor each board). Standard containers that look like dividedtrays are used. A container will hold 20 As or 10 Bs. It takes10 minutes to fill up a container with As and 20 minutes tofill up a container with Bs. Transit time to the assembly cell is5 minutes for both A and B. No safety factor is used. Set up akanban control system for the assembly process.arrow_forward
- Jitsmart is a retailer of plastic action-figure toys. The action figures are purchased from Tacky Toys, Inc., and arrive in boxes of 20. Full boxes are stored on high shelves out of reach of customers. A small inventory is maintained on child-level shelves. Depletion of the lower-shelf inventory signals the need to take down a box of action figures to replenish the inventory. A reorder card is then removed from the box and sent to Tacky Toys to authorize replenishment of a container of action figures. The average demand rate for a popular action figure, Agent 99, is 18 units per day. The total lead time (waiting plus processing) is 2 days. Jitsmart's safety stocky policy variable, a, is 0.05. What is the authorized stock level for Jitsmart? units. (Enter your response rounded to the nearest whole number.)arrow_forwardWhich among the following methods assigns costs on the assumption that the inventory quantities on hand represent those last purchased or produced? Select one alternative: First-in, first-out Weighted-average cost Specific identification Last-in, first-outarrow_forwardThe UCC only covers goods transaction, not services transactions. True Falsearrow_forward
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