Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Management Theories Expert

The Norwitch Company uses a continuous review (s, Q) system for inventory control.  Weekly demand for an item, Pressure Valve #5 (PV5), is distributed Normally with a mean and standard deviation of 20 and 10 respectively.  Norwitch uses an order quantity of 200 units for PV5 and its supplier takes 5 weeks to fill an order.  Each unit of PV5 costs $50 and carrying charges are $0.20/$/yr.  Norwitch uses a 99% fill rate as a target service measure.

(a) find out the reorder point, s, that would satisfy Norwitch's target fill rate.  What is the likelihood that Norwitch has stocked out of PV5 when a new shipment arrives from its supplier?

(b) Assume Norwitch has worked out a new contract, accepted by all its customers, of being allowed up to one week to satisfy every demand.  Norwitch still uses a 99% "fill rate" as a target service measure.  Though, stockouts satisfied within a week is considered as good as demand satisfied from on-hand inventory.

How will you modify logic of computing the re-order point, s, to take account of the one-week grace period?  Sketch the average behavior of the (s,Q) system to show your reasoning.

(c) find out the reorder point for the new contract.  What is the safety stock?  On an average, how much inventory Norwitch has on hand when new shipment of PV5 arrives?  

(d) find out approximately the annual cost savings due to one-week grace period.

(e) What would be the impact of one-week grace period on Norwitch's customers? Should Norwitch and its customers make the inventory status of PV5 known to each other?   What good would that do?

Bookstore buys a popular freshman physics book at $30 each and sells it to students at $50 each.  The same book is used for Fall and Winter terms.  Demand for books is distributed normally with a mean of 150 and 200 for Fall and Winter terms, respectively.  Standard deviation of demand is 50, for Fall as well as Winter terms.  The demand for each term can be supposed to be independent.

The publisher comes up with the new edition every year, making old edition of the book worthless.  Bookstore simply throws away any leftover books at the end of the academic year (Winter Term). You have been asked to help the Bookstore in its purchasing decision for Physics books.

(a)  Assume the Bookstore used a newsvendor model to order books for each term.  How many books must they order for Fall term and for the Winter term?

(b) Bill Nye, the new purchasing guy, at the Bookstore thinks one can just use the total demand for the year and make one purchasing decision for the whole year.  How much must he order using this reasoning?  Why this order quantity is different than the sum of order quantities computed separately for Fall and Winter in part (a)?

(c)  What will YOU recommend to the bookstore?  Propose an ordering policy (with numbers, if you can) and describe why this is a better alternative.  Is your policy the best one can do?  Why (not)?
Saki, a local bar, consumes Mehboob, the popular non-alcoholic drink, at a steady rate of 10 cases/week. Saki generally buys Mehboob at $6/case, delivered to its door. However, the supplier is presently offering a promotional price of $5/case.

(a) If the carrying cost for Mehboob is $0.25/$/year, how many cases must Saki buy to take advantage of this promotion? Suppose that present promotion might end any day and that next promotion is unlikely in foreseeable future. Indicate any other assumption(s) which you make for your analysis.

(b) How would your decision in part (a) modify in each of the following cases?

i. If you had reasons to believe that your supplier gives this promotion annually;

ii. If you had reasons to believe that your supplier might give this promotion again sometime between six months to a year from now, equally likely;

iii. To eliminate the ill-effects of forward buying, your supplier permits you to order any quantity you like, but delays the delivery until you actually need it.

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M91607

Have any Question? 


Related Questions in Management Theories

Apa style reference with in -text citationsdevelopment of a

APA STYLE REFERENCE WITH IN -TEXT CITATIONS Development of a Comprehensive Security Management Plan. In Section II. Security Business Requirement (Week 2) will be 2-3 pages to assess security business requirements for Am ...

International engineering managementfollowing advice from

International Engineering Management Following advice from an agent in Vietnam TNA have an opportunity to purchase a majority interest in a small local firm that manufactures equipment for the food processing and packagi ...

Assessment this assignment must be done as part of group

Assessment: This assignment must be done as part of group. Students are to form groups of 4 to 5 (may vary depending on class size) and will be allocated one organization/industry from the following list: 1. Business Sch ...

Assignmentthe purpose of an assignment is to ensure that

Assignment The purpose of an assignment is to ensure that the Learner is able to: Use methods of enquiry and research in a disciplined field. Interpret and evaluate text. Have a sound understanding of key principles and ...

The purpose of this assignment is to consider supply chain

The purpose of this assignment is to consider supply chain management (SCM) and SCM systems within the context of business strategy. Choose any organization and prepare a summary with 2 to 3 pages. Include the following ...

Topic name is environment issues and you have to use watson

Topic name is environment issues and you have to use Watson analytical tool. The topic will be on environmental issues. Your main task is to apply Watson analytical tool to develop innovative analytics visualization solu ...

Purchasing and supply management assignment-question 1 -a

Purchasing and Supply Management Assignment- Question 1 - (a) The purchasing function has an influence on other business functions. Elaborate on such influence with examples.    (b) Explain with examples how Purchasing a ...

Assessment 1 case managementthis assessment is designed to

Assessment 1: Case Management This assessment is designed to allow you to demonstrate your knowledge and skills in case management practices and protocols including: - Develop and utilise case management processes approp ...

Ethics and corporate responsibility1 alia a graphic artist

ETHICS AND CORPORATE RESPONSIBILITY 1. Alia, a graphic artist at an advertising firm, realizes that the head designer, Ryan, has been copying designs from the Internet and passing them off as his own. Alia informs the ma ...

Safety management questionsquestion 1select a workplace

Safety Management Questions Question 1 Select a workplace hazard with which you are familiar. Using the problem solving methodology below, discuss how you would approach each step for the hazard you selected. Identify th ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate