Explain a computer-supply mail order house has a memory chip, Operation Management

Assignment Help:

A computer-supply mail order house has a memory chip in inventory that it sells to customers around the country. A Japanese manufacturer supplies the item using airfreight. It has the following characteristics: Average annual demand = 3,200 Replenishment lead time = 1.5 weeks Carrying cost = 15% per year Purchase price, delivered = $55 per unit Procurement ordering cost = $35 per order a. Design a reorder point method of control for this item. b. What are the annual ordering and annual carrying costs if your design is used? c. Suppose that the lead time stretches to three weeks, so that the ROP>Q*. What adjustments would you suggest making in the control policy?


Related Discussions:- Explain a computer-supply mail order house has a memory chip

Explain positive organizational behaviours, How might incentives stimulate ...

How might incentives stimulate positive organizational behaviours? Discuss the place of rewards and punishments for organizational members. What is it important to know? What incen

Line balancing, What do you understand by “line balancing”? What happens if...

What do you understand by “line balancing”? What happens if balance doesn’t exist?

Effect of statistical process control, Effect of Statistical Process Contro...

Effect of Statistical Process Control The essence of this approach is that, having set up a process and established that it is stable, sample measurements of the process outpu

Explain analysis in determining project risk, Evaluate the use of statistic...

Evaluate the use of statistical analysis in determining project risk and how it might be applied to the human factors of a project

Explain motivation, Explain Motivation. The factors leading mainly towa...

Explain Motivation. The factors leading mainly towards motivation are :- (i) Achievement - Personal satisfaction in job completion and problem solving. (ii) Advancement -

Explain repetition of new product, You are a consultant called in to estima...

You are a consultant called in to estimate the costs after the employees learn how to do a job more efficiently by repetition of new product. You find a company can produce a produ

Partial factor and total factor productivity, Consider - a small manufactur...

Consider - a small manufacturing company which produces high quality furniture has provided the following data:                                                                 2

Supervisory safety performance, 1. Supervisory Safety performance a. Job s...

1. Supervisory Safety performance a. Job safety analysis b. Proper job placement c. Development of safe working conditions. d. Enforcement of safety rules. e. Promotion of

Explain choosing a new piece of equipment, The following table shows the cr...

The following table shows the critical factors in a company's decision on choosing a new piece of equipment. Calculate the breakeven volume and utilization for each option and then

Explain general strategies in the business buying decision, Describe the ei...

Describe the eight general strategies in the business buying decision process

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd