operations mgmt exam 3 sets combined

Demand for a book at Amazon.com is 340 units per week. The product is supplied to the retailer from a factory. The factory pays $10 per unit. while the total cost of a shipment from the factory to the retailer when the shipment size is Q is given by Shipment cost = $80 + 2Q Assume the annual inventory carrying cost is 27 percent. a-2. What is the annual holding cost per book?

$3.24

Demand for a book at Amazon.com is 340 units per week. The product is supplied to the retailer from a factory. The factory pays $10 per unit. while the total cost of a shipment from the factory to the retailer when the shipment size is Q is given by Shipment cost = $80 + 2Q Assume the annual inventory carrying cost is 27 percent. c. What is the average throughput time?

0.317

Annual demand for a product is 11,960 units; weekly demand is 230 units with a standard deviation of 50 units. The cost of placing an order is $125, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.80 per unit. a. To provide a 98 percent service probability, what must the reorder point be?

1125

A particular raw material is available to a company at three different prices, depending on the size of the order: Less than 100 lbs $15/lb 100 lbs to 1,999 lbs $14/lb 2,000 lbs or more $13/lb The cost to place an order is $60. Annual demand is 2,900 units. The holding (or carrying) cost is 30 percent of the material price. What is the economic order quantity to buy each time, and its total cost?

2,000; 41,687

Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,000 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more item X, it costs $12. b. What is the annual cost for ordering item X? (Round your answer to 2 decimal places.)

244.90 ((2000/98)*12)

Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,000 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more item X, it costs $12. c. What is the annual cost for storing item X? (Round your answer to 2 decimal places.)

245 ((98/2)*5)

UA Hamburger Hamlet (UAHH) places a daily order for its high-volume items (hamburger patties, buns, milk, and so on). UAHH counts its current inventory on-hand once per day and phones in its order for delivery 24 hours later. Average Daily Demand 550 Standard Deviation of Demand 140 Desired Service Probability 95% Hamburger Inventory 915 Determine the number of hamburgers UAHH should order for the above conditions:

510

Annual demand for a product is 11,960 units; weekly demand is 230 units with a standard deviation of 50 units. The cost of placing an order is $125, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.80 per unit. b. Suppose the production manager is told to reduce the safety stock of this item by 125 units. If this is done, what will the new service probability be?

79%

Demand for a book at Amazon.com is 340 units per week. The product is supplied to the retailer from a factory. The factory pays $10 per unit. while the total cost of a shipment from the factory to the retailer when the shipment size is Q is given by Shipment cost = $80 + 2Q Assume the annual inventory carrying cost is 27 percent. a-1. What is Amazon's total cost per shipment?

80 +12Q (total cost per shipment = fixed cost + variable cost)

Demand for a book at Amazon.com is 340 units per week. The product is supplied to the retailer from a factory. The factory pays $10 per unit. while the total cost of a shipment from the factory to the retailer when the shipment size is Q is given by Shipment cost = $80 + 2Q Assume the annual inventory carrying cost is 27 percent. b. What is the optimal shipment size?

934

Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,000 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more item X, it costs $12. a. Whenever item X is ordered, what should the order size be? (Round your answer to the nearest whole number.)

98 (sqr root of 2*2000*12/5)

What term is used to identify the difference between the number of units of an item listed on the master schedule and the number of firm customer orders?

Available to promise

Almost certainly you have seen vending machines being serviced on your campus and elsewhere. On a predetermined schedule, the vending company checks each machine and fills it with various products. This is an example of which category of inventory model?

Fixed-time period model

What is the term used to refer to inventory while in distribution—that is, being moved within the supply chain?

In-transit inventory

What is the process used to ensure that all of the needs for a particular item are calculated at the same time in the MRP process?

Low-level coding

What are the three primary data sources used by the MRP system?

Master production schedule, bill-of-materials, inventory records file

Which scheduling process drives requirements in the MRP process?

Master production scheduling

What is another common name for the bill-of-materials?

Product structure tree

What is the MRP term for the time periods used in planning?

Time buckets

MRP is based on what type of demand?

Dependent demand

To support the manufacture of desktop computers for its customers, Dell needs to order all the parts that go into the computer, such as hard drives, motherboards, and memory modules. Obviously, the demand for these items is driven by the production schedule for the computers. What is the term used to describe demand for these parts?

Dependent demand