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Demand for Stick disposable razors at Buyright Drugs averages seven packages per day. The razors cost Buyright $0.80 per package and sell for $1.49. Buyright uses a 20% annual holding cost rate and estimates the cost to place an order for additional razors at $25. Buyright is open 365 days a year, has an average demand of 10 packages per day, and desire a safety stock of 25 packages. The lead time for delivery is five days. Determine the following: a. The optimal inventory policy (order quantity and reorder point) for Stick razors.
b. The number of days between orders (cycle time).
c. The total annual inventory cost (holding, ordering, and procurement) and the projected annual net profit of this policy.
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Select a public company of your choice and run a PESTS analysis. Based on your analysis, what strategic initiative would you recommend? Why?
Customers who come in ask for help at the information desk, but the shelf areas for the many schools, departments and courses are clearly marked, so most customers help themselves. Then they come to the cash registers to check out.
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Identify and discuss the trade offs associated with operating a supply chain that handles both forward and reverse movements as compared with separate supply chains for these movements?
It takes 20 minutes to receive the packages he needs from the previous workstation. How many kanbans are needed for the filling process?
Alfonzo's Pizzeria purchased its building 8 years ago at a cost of $76,000. The building is currently valued at $212,000. Alfonzo's has other fixed assets that cost $58,000 and are currently valued at $69,000.
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