Explain setup cost is independent of order size, Operation Management

Assignment Help:

1. A stock out occurs when an item that is typically stocked is not available to satisfy a demand the moment it occurs.

2. A backorder occurs when a customer order cannot be filled when it is placed, but is instead filled later.

3. Setup cost is independent of order size.

4. Reducing setup costs will increase the pressure to keep larger inventories.

5. Increasing inventory levels can sometimes help a firm reduce both its inbound and outbound transportation costs.

6. A quantity discount is attractive because there is a drop in the price per unit when the order is sufficiently large.

7. Repeatability is an undesirable feature of some orders because they must be repeated until the order is filled correctly.

8. The primary lever to reduce anticipation inventory is to place orders closer to the time when they must be received.

9. Forward placement is a reduction in inventory and safety stock because of the merging of variable demands from customers.

10. Inventory turnover is obtained by dividing the average aggregate inventory value by sales per week at cost


Related Discussions:- Explain setup cost is independent of order size

Explain effort-driven, Answer the followingquestions (use MS Project help i...

Answer the followingquestions (use MS Project help if necessary)- Define effort-driven? Under what circumstances would you turn off effort driven scheduling? Use a real-wo

Explain when you go shopping for a new computer, When you go shopping for a...

When you go shopping for a new computer, is your real objective to import a computer into your apartment, or is it to export cash from your wallet? What does this tell you about th

Explain baggage check-in of a small airline, From "Matching Supply with Dem...

From "Matching Supply with Demand" - Cachon/Terwiesch Consider the baggage check-in of a small airline. Check in data indicate that from 9am to 10am, 255 passengers checked in.

Explain unobtrusive surveillance, What legitimates intruding into others li...

What legitimates intruding into others lives' through unobtrusive surveillance, through market research, or by whatever means?

Explain the five elements of self-leadership, 1. Discuss the advantages and...

1. Discuss the advantages and disadvantages of the four reward objectives. 2. Identify several team and organizational level performance based rewards. 3. Describe five ways

Explain what happens to the leased property, Ann leases an office in Ted's ...

Ann leases an office in Ted's building for a one-year term. At the end of the period specified in the lease, the lease ends without notice, and possession of the office returns to

Explain staff development, Staff Development Please respond to the follo...

Staff Development Please respond to the following: Analyze the different development approaches and discuss which approach (or which combination of approaches) would be most

Forecasting adn Time Series Anlaysis, To answer Question 1: Use the forecas...

To answer Question 1: Use the forecasting module that you opened in the POM-QM for Windows software to solve the Southwestern University case study at the end of Chapter 4 of the H

Determine the biggest management challenge, What does Drucker see as the bi...

What does Drucker see as the biggest management challenge for the 21st century?  Answer: Improving the productivity of the office worker.

Explain ddi communications model, What`s the use of DDI communications mode...

What`s the use of DDI communications model most typically used by and for 1st level supervisors?

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