Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Homework Help/Study Tips Expert

problem 1

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 will 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 each demand. Norwitch still uses a 99% “fill rate” as a target service measure. However, stockouts satisfied within a week is considered as good as demand satisfied from the on-hand inventory.

How will you change the 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 illustrate 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 a new shipment of PV5 arrives?

(d) Estimate the annual cost savings due to the one-week grace period.

(e) What will 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 will that do? problem 2

Columbia 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. The demand for books is distributed Normally with a mean of 150 and 200 for Fall and Winter terms, respectively. The standard deviation of demand is 50, for Fall as well as Winter terms. The demand for each term can be assumed to be independent.

The publisher comes up with a new edition every year, making the old edition of the book worthless. The 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) Suppose the Bookstore used a newsvendor model to order books for each term. How many books should 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 should 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 would 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)? problem 3

Manufacturing glass for the iPhone revived a Corning factory in Kentucky, and today, much of the glass in iPhones is still made there. After the iPhone became a success, Corning received a flood of orders from other companies hoping to imitate Apple’s designs. Its strengthened glass sales have grown to more than $700 million a year, and it has hired or continued employing about 1,000 Americans to support the emerging market. But as that market has expanded, the bulk of Corning’s strengthened glass manufacturing has occurred at plants in Japan and Taiwan.

“Our customers are in Taiwan, Korea, Japan and China,” said James B. Flaws, Corning’s vice chairman and chief financial officer. “We could make the glass here, and then ship it by boat, but that takes 35 days. Or, we could ship it by air, but that’s 10 times as expensive. So we build our glass factories next door to assembly factories, and those are overseas.”
“How the U.S. Lost Out on iPhone Work,” The New York Times, January 21, 2012

Compare Corning’s decision to locate its factories in Asia to Lenzing’s decision to locate rayon fiber production in Indonesia. What are the similarities and differences?

problem 4

Saki, a local bar, consumes Mehboob, a popular non-alcoholic drink, at a steady rate of 10 cases/week. Saki usually buys Mehboob at $6/case, delivered to its door. However, the supplier is currently offering a promotional price of $5/case.

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

(b) How will your decision in part (a) change 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 may 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 allows you to order any quantity you like, but delays the delivery until you actually need it.

problem 5

How is the JIT II program at Bose Corporation related to the JITD initiative at Barilla SpA? What are the fundamental similarities and differences between the two programs?

problem 6

Compare Suzlon, Lenzing and Zara on the following dimensions (indicate key words):

127_Dimensions for comparison.jpg

Homework Help/Study Tips, Others

  • Category:- Homework Help/Study Tips
  • Reference No.:- M91825

Have any Question? 


Related Questions in Homework Help/Study Tips

Analyzing an ethical decisionin your role as an advanced

Analyzing an Ethical Decision In your role, as an advanced practice nurse, you will encounter several situations that will require your ability to make sound judgments and practice decisions for the safety and well-being ...

Natalie was growing concerned about her daughter brandis

Natalie was growing concerned about her daughter Brandi's school performance. Her grades had dropped since the beginning of the school year, and she seemed reluctant to go to school. On some days, she complained of vague ...

Structure of assignmentexecutive summarybackground3 to 4

Structure of assignment Executive summary Background (3 to 4 problem definition and recommendation would be sufficient, quality matters not numbers, do it with concepts examples strictly to the point) (Separate reference ...

Your team has been assigned to give a presentation to your

Your team has been assigned to give a presentation to your organization's board of ethics. The team will discuss a current emerging ethical issue that faces your organization and its social responsibility toward the issu ...

Article lewin t 2010 january 20 if your children are awake

Article: Lewin, T. (2010, January 20). If your children are awake, then they're probably online. The New York Times, p. A1. Retrieved from the ProQuest Central database. In this article, the author summarizes the finding ...

Managing hotel guest experience tri party relationship case

Managing Hotel Guest Experience Tri Party Relationship Case Study In this assignment, you will read a brief case study, and then using what you have learned in the course, answer the questions given. The Case of the Unha ...

Presidential rhetoric project - appeals in presidential

Presidential Rhetoric Project - Appeals in Presidential Rhetoric Objective: Demonstrate your ability to identify the three audience appeals (logos, ethos, and pathos) in a work and discuss how they affect the audience's ...

General practicum information- students should complete the

General Practicum Information - Students should complete the Practicum Placement Form and Observation and Activity Log located in the Practicum/Field Experience Manual, including the names of the schools and grade levels ...

Iii essayshort answeranswer 5 of the 10 questions1what are

III ESSAY/SHORT ANSWER ANSWER 5 OF THE 10 QUESTIONS. 1. What are the elements of either mail fraud, wire fraud, or bank fraud? How do mail and wire fraud differ with regard to the federal jurisdiction nexus? Does a fraud ...

Assessment descriptionover the last two quarters since the

Assessment Description Over the last two quarters since the submission of the business plan to the venture capitalists (lecturer), you have been working hard to grow your business and integrate feedback and learning's. I ...

  • 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