Operations management - inventory management

Need help with "inventory management" problem... Problem (also attached): In a typical week, the ZYX Company uses 10 cartridges for its printers (all the same model). It estimates that the cost of placing each order (including shipment) amounts to $ 45 per order, and that the cost of keeping a cartridge in stock (including the cost of capital) is $1 per week. The office manager orders 30 cartridges when she sees that the stock on hand has reached 20 units. The order arrives after a week. The supplier offers to take over management of the inventory of cartridges for XYZ. It will provide exactly the same service level (to the users inside the company) as before. (In other words, ... click for more

Operations management - supply chain management & the bullwhip effect

All I can come up with are lengthy answers when I should be coming up with short, succinct answers. Help please. Questions (also attached): Question 1: IF ... THEN questions - see attached. Question 2: A plant makes four different models of DeskJet printers. Up to now, it has been producing each model only once every week (for example, Model A on Mondays, Model B on Tuesdays and part of Wednesdays, Model C on Wednesdays and Thursdays, and Model D on Fridays). There is a proposal to move from weekly to daily schedule and produce some of each model every day. Total weekly production output would be the same. Changeover times and costs (from one model to another) are insig... click for more

"operations management" -- inventory management

Question is: ========= The policy in a military base is to have 99.7% "service level" for vehicle spare parts. If the base is short of any part, it can get it from a central warehouse in one week. Assume it costs 1 % of value of the part to carry it in inventory for a week. (For example, if a part costs $200, its inventory carrying cost is $2 per week.) What is the implied "shortage cost" for a part that costs $1000 under this policy? What is it for a part that costs $20? What are the pros and cons of this policy?

"operations management" --- inventory management

Help please, I'm so confused. Questions (also attached): Power Toys Inc produces small remote controlled toy trucks on a conveyor belt with nine stations. Each station has , under the current process layout, one worker assigned to it. Stations and processing times are summarized in the attached table. a) What is the bottleneck in this process? b) What is the capacity, in toy trucks per hour, of the assembly line c) What is the direct labor cost for the toy truck with the current process if each worker receives $15/hour, expressed in dollars per toy truck? d) What would be the direct labor cost for the toy truck if work would be organized in a work cell, that is, one worker perf... click for more

Operations management - inventory management

I'm probably overcomplicating the solution to this problem, but I'm stuck. Millennium Liquors is a wholesale of sparking wines. Their most popular product is the French Bete Noire 1989. Weekly demand is 45 cases. Assume demand occurs over 50 weeks per year. The wine is shipped directly from France. Millennium's annual cost of capital is 15 percent, which also includes other inventory-related costs. Below are some other data on the costs of shipping and handling. These costs include the usual ordering and handling costs, plus the cost of refrigeration, which includes a fixed component (mainly depreciation of the cooling equipment) and a variable component that depends on the number ... click for more