Question 1 -
Sherry's Pet Food Emporium uses an EOO approach with continuous review for their most popular dog food, Dingo Delight. Demand for Dingo Delight is variable, with a relatively constant rate over the course of a year. Lead time for reordering is 8 days; as soon as the product leaves the supplier it is owned by Sherry's Pet Food Emporium. Thinking about the six types/purposes of inventory we discussed in COMM 204, what type or types of stock does this inventory model result in? Briefly explain why.
Question 2 -
Customers arrive at the department of motor vehicles (DMV) to renew their licenses at a rate of 1.6 customers per hour. The service time averages 16.6 minutes per customer, with a variance of 33.6 minutes2.
What is Cs (from the PK formula)?
For the above question, what should you assume about the distribution of inter-arrival times, and why?
Question 3 -
Suppose for a project you're managing you wish to shorten the project duration. Briefly explain why it doesn't make sense to crash a task that is not on the critical path?
Question 4 -
For a large grocery store selling Tide, give two reasons for why a periodic review approach might be better. Also give a reason for remaining with the continuous review approach (as per the previous question).
Question 5 -
Suppose you work at a sushi restaurant known for its amazing hamachi (yellowtail) sashimi. It is your job to place an order each morning for hamachi. The order arrives before you open for lunch, and whatever you order will hopefully last through lunch and dinner; any unused hamachi at the end of the day cannot be used for sashimi (raw fish) the next day and must be cooked or pickled, which greatly reduces its value.
Your fish supplier offers to add a second delivery time before dinner.
1. What inventory model were you using for hamachi when there was a single delivery before lunch?
2. How will the second delivery make your job easier?
3. With the second delivery, will you still be using the same inventory model? Why or why not?