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978-0134731889 Case

978-0134731889 Case

Supply Chain Coordination with Commodity Products KAR Customer Monthly Demand 10,000 10,000 Fixed Order Cost 4,000.00R$ 100.00R$ Holding Cost 20% 20% Cost 2.50R$ 4.00R$ Sale Price 4.00R$ Calculated Lot Size 5,477 Sum of Order and Holding Cost 89,004.92R$ 4,381.78R$ Material […]

2 Pages | January 8, 2021
978-0134731889 Case – Kph – Case

978-0134731889 Case – Kph – Case

Input Data (Costs etc.) Item Cost Material cost/unit 20,000$ Inventory holding cost/unit/month 300$ Marginal cost of stockout/unit/month 2,000$ Hiring and training cost/worker 3,000$ Layoff cost/worker 5,000$ Labor hours required/unit 100 Regular time cost/hour 20$ Over time cost/hour 30$ Maximum overtime […]

7 Pages | January 8, 2021
978-0134731889 Case – Quicktron – Case

978-0134731889 Case – Quicktron – Case

Input Data (Costs etc.) Item Cost (‘000s) Material cost/unit 500 Inventory holding cost/unit/month 50 Marginal cost of stockout/unit/month 100 Hiring and training cost/worker 400 Layoff cost/worker 800 Team labor hours required/ thousand units 8 Regular time cost/hour 4 Over time […]

4 Pages | January 8, 2021
978-0134731889 Case Alko Case Study

978-0134731889 Case Alko Case Study

Case Study: ALKO Inputs Holding cost, H = 0.15$ per unit and day TL costs from plants to DCs = 0.09$ per unit LTL costs from DC to customers = 0.10$ per unit TL costs from plants to central whse. […]

9 Pages | January 8, 2021
978-0134731889 Case Biopharma

978-0134731889 Case Biopharma

BioPharma Inc. Regional Sales and Plant Capacities Plant Capacity Highcal Relax Latin America 7.0 7.0 Brazil 18.0 Europe 15.0 12.0 Germany 45.0 Asia w/o Japan 5.0 3.0 India 18.0 Japan 7.0 8.0 Japan 10.0 Mexico 3.0 3.0 Mexico 30.0 U.S. […]

10 Pages | January 8, 2021
978-0134731889 Case Biopharma Case Discussion Questions

978-0134731889 Case Biopharma Case Discussion Questions

CHAPTER SIX BioPharma Case Questions 1. How should BioPharma have used its production network in 2013? Should any of the plants have been idled? What is the annual cost of your proposal, including import duties? This solution was obtained using […]

3 Pages | January 8, 2021
978-0134731889 Case Blockbuster

978-0134731889 Case Blockbuster

CASE STUDY—The Demise of Blockbuster Teaching Objectives The objective of this case is to discuss how different business models and supply chain structures impact the financials of the firms in the DVD rental business. In particular, the goal is to […]

3 Pages | January 8, 2021
978-0134731889 Case Blue Nile

978-0134731889 Case Blue Nile

CASE STUDY— Blue Nile and Diamond Retailing The learning objectives of the case are to (1) understand the link between supply chain structure and financial performance, (2) identify key drivers of supply chain performance and how they affect a firm’s […]

7 Pages | January 8, 2021
978-0134731889 Case Bluenile Worksheet

978-0134731889 Case Bluenile Worksheet

Blue Nile Zale Tiffany Net Sales 400.0 1,888.0 3,794.2 Cost of Sales 325.0 903.6 1,631.0 Gross Profit 75.1 984.4 2,163.2 Selling, General, and Administrative Expenses 62.8 916.3 1,466.1 Operating Income 12.3 35.1 697.2 Net Income 8.4 10.0 416.1 Cash and […]

1 Pages | January 8, 2021
978-0134731889 Case Coolwipes

978-0134731889 Case Coolwipes

CoolWipes 1) The total cost to serve the entire nation from Chicago is $32,661.40 as illustrated below: Copyright © 2019 Pearson Education, Inc. CoolWipes 2) Based upon a reduction in total costs to $31,025, we would recommend building new plants […]

9 Pages | January 8, 2021
978-0134731889 Case Coolwipes Worksheet

978-0134731889 Case Coolwipes Worksheet

Plant Fixed Cost Variable Cost/Unit Capacity Fixed Cost Variable Cost/Unit Capacity Chicago 5,000 10 5,000 1,500 20 1,000 Princeton, NJ 2,200 10 2,000 1,500 20 1,000 Atlanta 2,200 10 2,000 1,500 20 1,000 LA 2,200 10 2,000 1,500 20 1,000 […]

1 Pages | January 8, 2021
978-0134731889 Case Forever Young

978-0134731889 Case Forever Young

Evaluating the Onshoring Option Starting Demand 1,000 Variable Cost / Unit = $10 Sale Price = $20 Starting Yuan / $ 6.5 Period 2 Analysis Period 1 Analysis Period 0 Analysis E (Yuan Exchange Rate) D(Demand) Revenue Cost Profit E […]

3 Pages | January 8, 2021
978-0134731889 Case Kph Case

978-0134731889 Case Kph Case

Chapter 8 – Teaching Note for Kloss Planters and Harvesters The case is designed to help students understand the benefits of using the same assembly line for counter cyclical products such as planters and harvesters. All results are from the […]

3 Pages | January 8, 2021
978-0134731889 Case Lightning

978-0134731889 Case Lightning

CHAPTER FIVE Case Questions (see corresponding Chapter 5 case Excel spreadsheet) 1. What is the annual cost if Lightning uses the current network (with warehouses specialized as in Table 5-17) optimally to meet European demand? The distribution quantities and costs […]

4 Pages | January 8, 2021
978-0134731889 Case Lightning Worksheet

978-0134731889 Case Lightning Worksheet

Warehouse Capacity and Fixed Cost Location Capacity Annual Fixed Cost Madrid 370,000 600,000 Rotterdam 420,000 650,000 Krakow 310,000 520,000 Toulouse 280,000 475,000 Munich 290,000 488,000 Budapest 250,000 425,000 Regional Demand by Product Northwest Southwest Middle North Middle South Northeast Southeast […]

6 Pages | January 8, 2021
978-0134731889 Case Mintendo – Case Study

978-0134731889 Case Mintendo – Case Study

Sheet1 Aggregate Planning Demand Forecast Month Demand Forecast January 100,000 February 110,000 March 130,000 April 180,000 May 250,000 June 300,000 Costs Item Cost Materials cost/unit 12.00$ Inventory holding cost/unit/month 2.00$ Marginal cost of stockout/unit/month 10.00$ Hiring and training cost/worker 3,000.00$ […]

6 Pages | January 8, 2021
978-0134731889 Case Mintendo – Case Study Answers

978-0134731889 Case Mintendo – Case Study Answers

Chapter 9—Mintendo Game Girl The results for this case are obtained using the accompanying spreadsheet Mintendo – Case Study. 1. A comparison of the three options for the case with a $5 discount follows: Basic Model The decision variables are […]

4 Pages | January 8, 2021
978-0134731889 Case Moonchem Case Study

978-0134731889 Case Moonchem Case Study

Type Number Consumption D Q D/Q SSD/Q HQ/2 Total Cost / Customer Total Cost nQ/2 Small 12 1,000 12,000 40,000 0.30 $400 $120 $5,000 $5,120 $61,440 240000 Medium 6 5,000 60,000 40,000 1.50 $400 $600 $5,000 $5,600 $33,600 120000 Large […]

5 Pages | January 8, 2021
978-0134731889 Case Moonchem Case Study Answers

978-0134731889 Case Moonchem Case Study Answers

Chapter 11 – MoonChem Case Study 1. What is the annual cost of MoonChem’s strategy of sending full truckloads to each customer in the Peoria region to replenish consignment inventory? MoonChem’s customer profile appears in Table 11-4 and is reproduced […]

6 Pages | January 8, 2021
978-0134731889 Case Movie Rental Business

978-0134731889 Case Movie Rental Business

5-310-507TN SUNIL CHOPRA Teaching Note: Movie Rental Business: Blockbuster, Netflix, and Redbox Teaching Objectives The objective of this case is to discuss how different business models and supply chain structures impact the financials of the firms in the DVD rental […]

9 Pages | January 8, 2021
978-0134731889 Case Postponement Case Study

978-0134731889 Case Postponement Case Study

Should Packaging Be Postponed to the DC? 30% 0.95 9 weeks 0 2.00$ Unit Cost Weekly Demand Mean SD Mean SD Mean SD Target 1000 700 2000 1000 4000 1000 Best Buy 700 600 1500 800 4500 900 Office Max […]

1 Pages | January 8, 2021
978-0134731889 Case Quicktronics Case

978-0134731889 Case Quicktronics Case

Chapter 8 – Teaching Note for Smartphone production at QuickTronics The case is designed to help students learn how to set up a basic aggregate planning model using linear programming in Excel. The case illustrates the value of volume flexibility […]

2 Pages | January 8, 2021
978-0134731889 Case Seven Eleven

978-0134731889 Case Seven Eleven

CHAPTER THREE Case Questions 1. A convenience store chain attempts to be responsive and provide customers with what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can […]

4 Pages | January 8, 2021
978-0134731889 Case Seven Eleven Teaching Note

978-0134731889 Case Seven Eleven Teaching Note

SUNIL CHOPRA Teaching Note: Seven-Eleven Japan Co. The goal of this case is to illustrate how a firm can be successful by structuring its supply chain to support its supply chain strategy. Once Seven-Eleven Japan decided to provide responsiveness by […]

3 Pages | January 8, 2021
978-0134731889 Case Spc – Part A – Case Discussion

978-0134731889 Case Spc – Part A – Case Discussion

1 Chapter 7—Specialty Packaging Corporation, Part A The results for this case are obtained using the accompanying spreadsheet Chapter 7—SPC case study answer. Given the clear seasonal pattern in the data, the forecast is made using the static forecasting method […]

4 Pages | January 8, 2021
978-0134731889 Case Spc Case Study Answer

978-0134731889 Case Spc Case Study Answer

SPC Year Quarter 1I II p = 4 (even) III IV 2I II III IV III IV Black Plastic Quarter Period Demand Dt Deseasonalized Demand (7.2) Deseasonalized Demand (based on regression) Seasonal Factor St Forecast EtAtBias MSE MAD Percent Error […]

6 Pages | January 8, 2021
978-0134731889 Case Teaching Note

978-0134731889 Case Teaching Note

Copyright © 2019 Pearson Education, Inc. Chapter 11 – Teaching Note for Pricing and Delivery at KAR Foods 1. What do you think of the discounting scheme that KAR had used historically? Do you think it was justified given the […]

3 Pages | January 8, 2021
978-0134731889 Case Teaching Note For Gulmarg Skis

978-0134731889 Case Teaching Note For Gulmarg Skis

Chapter 9 – Teaching Note for Promotion Challenges at Gulmarg Skis As Gulmarg plans its response for the coming season, the company must make its plans without quite knowing what Kitz plans to do. The choices for Gulmarg are to […]

6 Pages | January 8, 2021
978-0134731889 Case Walmart Financials

978-0134731889 Case Walmart Financials

Chapter 3: Walmart and Macy’s Financials For the year, 2012, the various financial metrics for Walmart, Macy’s, Amazon, and Nordstrom are as follows: The various performance metrics compared across firms are as follows: Copyright © 2019 Pearson Education, Inc. 1) […]

2 Pages | January 8, 2021
978-0134731889 Case Walmart Financials Worksheet

978-0134731889 Case Walmart Financials Worksheet

Comparison of Firm Performance Performance Metrics Walmart Macy’s Amazon.com Nordstrom Inc. Walmart Macy’s Amazon.com Nordstrom Inc. Net operating revenues 469,162 27,686 74,452 12,148 Return on Assets 9.46% 7.02% 0.91% 10.37% Cost of goods sold 352,488 16,538 54,181 7,432 Return on […]

1 Pages | January 8, 2021
978-0134731889 Case Winner Apparel – Simulation

978-0134731889 Case Winner Apparel – Simulation

Simulation for Winner Apparel (two orders in the season) Product Sale Price, p Sourcing cost, c Net salvage value, s Mean Demand over first cycle, μ1 SD of Demand over first cycle, σ1 Optimal Service Level Optimal Order Size Expected […]

4 Pages | January 8, 2021
978-0134731889 Case Winner Apparel Case

978-0134731889 Case Winner Apparel Case

Single Order in a Season from Low-Cost Supplier Product Sale Price, p Sourcing cost, c Net salvage value, s Mean Season Demand, μ SD of Season Demand, σ Optimal Service Level Optimal Order Size Expected Overstock Expected Understock Expected Profit […]

2 Pages | January 8, 2021
978-0134731889 Case Winner Apparel Case – Teaching Note

978-0134731889 Case Winner Apparel Case – Teaching Note

Teaching Note: The Need for Speed at Winner Apparel The goal of this case is to get students to evaluate the benefits of responsiveness for different product categories. Trendy is a product line with higher unpredictability, while Basic is more […]

3 Pages | January 8, 2021
978-0134731889 Cases

978-0134731889 Cases

To Savor or to Groupon? Input Mean demand, µ = 60 Standard Deviation of Demand, s = 30 Average spend per table = 60$ Revenue from Groupon per table = 15$ Marginal cost per table = 10.00$ Cost per unused […]

2 Pages | January 8, 2021
978-0134731889 Cases Polaris Teachingmodel Workingcopy 20130417

978-0134731889 Cases Polaris Teachingmodel Workingcopy 20130417

This teaching model relates to the case Polaris Industries Inc., Case #5-112–003. ©2012 by the Kellogg School of Management at Northwestern University. This case was prepared by Ioana Andreas ’12, Sigmund Gee ’12, Ivi Kolasi ’12, Stephane Lhoste ’12, and […]

6 Pages | January 8, 2021
978-0134731889 Cases Polaris Tn Workingcopy 20130419

978-0134731889 Cases Polaris Tn Workingcopy 20130419

©2013 by the Kellogg School of Management at Northwestern University. This teaching note was prepared by Professor Sunil Chopra. Teaching notes are developed solely to help academic faculty teach specific cases. Cases and teaching notes are not intended to serve […]

Pages | January 8, 2021
978-0134731889 Cases Teaching

978-0134731889 Cases Teaching

1 Teaching Note: China Imports The goal of this case is to get students to evaluate the cost of using different transportation modes for various product categories. Air freight and ocean shipping are the two transportation modes considered. Air freight […]

3 Pages | January 8, 2021
978-0134731889 Cases Teaching – Note – Same

978-0134731889 Cases Teaching – Note – Same

Teaching Note – Same-Day Delivery The Future of Same-Day Delivery: Same as the Past? Case Synopsis In 2012, several retailers, including Amazon and Walmart, experimented with same-day delivery. Home delivery of pizzas had been a very successful model in the […]

5 Pages | January 8, 2021
978-0134731889 Cases Teaching Note For Groupon

978-0134731889 Cases Teaching Note For Groupon

Teaching Note for to Savor or to Groupon The case is designed to help students understand the importance of limiting capacity assigned to lower paying customers if the higher paying customers arrive later. All results are from the spreadsheet Chapter16-Groupon. […]

4 Pages | January 8, 2021
978-0134731889 Chapter 08 Gang Aft Agley A Manufacturing Company

978-0134731889 Chapter 08 Gang Aft Agley A Manufacturing Company

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 8 Aggregate Planning in a Supply Chain 8.1 True/False Questions 1) The goal of aggregate planning is to satisfy demand in a way that minimizes profit. Answer: FALSE Diff: 1 […]

9 Pages | August 15, 2020
978-0134731889 Discussion Question

978-0134731889 Discussion Question

CHAPTER THREE Discussion Questions 1. How could a grocery store use inventory to increase the responsiveness of the company’s supply chain? The logistical driver of inventory encompasses all raw materials, work in process, and finished goods within a supply chain. […]

5 Pages | January 8, 2021
978-0134731889 Discussion Question Answers

978-0134731889 Discussion Question Answers

CHAPTER SEVENTEEN Discussion Questions 1. What are some benefits to improved sustainability of a supply chain? • Reducing risk and improving financial performance of the supply chain • Attracting customers who value sustainability • Making the world more sustainable 2. […]

9 Pages | January 8, 2021
978-0134731889 Discussion Questions

978-0134731889 Discussion Questions

CHAPTER FIFTEEN Discussion Questions 1. What are some ways that a firm such as Walmart benefits from good sourcing decisions? The bottom line is that good sourcing decisions improve profits for the firm and total supply chain surplus. The authors’ […]

4 Pages | January 8, 2021
978-0134731889 Example

978-0134731889 Example

Supply Chain Coordination with Commodity Products Manufacturer (M) DO (R ) Monthly Demand 10,000 10,000 Fixed Order Cost, S250$ 100$ Holding Cost, h20% 20% Cost, C2.00$ 3.00$ Sale Price 3.00$ Calculated Lot Size 6,325 Sum of Order and Holding Cost […]

6 Pages | January 8, 2021
978-0134731889 Example – Examples 1 Thru 13 Part 1

978-0134731889 Example – Examples 1 Thru 13 Part 1

Example 12-1 Evaluating Cycle Service Level Given a Replenishment Policy (Example 12-1) Inputs Average demand per unit time D = 2,500 SD of demand per unit time sD = 500 Lead time, L = 2 Lot size Q = 10,000 […]

Pages | January 8, 2021
978-0134731889 Example – Examples 1 Thru 13 Part 2

978-0134731889 Example – Examples 1 Thru 13 Part 2

Example 12-4 Inputs Q D s DLss 10,000 2,500 500 2 1,000 Distribution of Demand during Lead Time DL sL 5000 707 Cycle Service Level and Fill Rate CSL ESC fr 0.92 25.13 0.9975 Evaluating Fill Rate Given Safety Inventory […]

Pages | January 8, 2021
978-0134731889 Example 9 – Examples

978-0134731889 Example 9 – Examples

Tables 8-2, 8-3 Aggregate Planning (Chapter 8−9) Demand Forecast Month Demand Forecast January 1,600 February 3,000 March 3,200 April 3,800 May 2,200 June 2,200 Costs Item Cost Materials cost/unit 10$ Inventory holding cost/unit/month 2$ Marginal cost of stockout/unit/month 5$ Hiring […]

5 Pages | January 8, 2021
978-0134731889 Example Chapter 8

978-0134731889 Example Chapter 8

Tables 8-2, 8-3 Aggregate Planning (Chapter 8-9) Demand Forecast Month Demand Forecast January 1,600 February 3,000 March 3,200 April 3,800 May 2,200 June 2,200 Costs Item Cost Materials cost/unit 10$ Inventory holding cost/unit/month 2$ Marginal cost of stockout/unit/month 5$ Hiring […]

9 Pages | January 8, 2021
978-0134731889 Example Chapter 8 9 – Examples

978-0134731889 Example Chapter 8 9 – Examples

Tables 8-2, 8-3 Aggregate Planning (Chapter 8-9) Demand Forecast Month Demand Forecast January 1,600 February 3,000 March 3,200 April 3,800 May 2,200 June 2,200 Costs Item Cost Materials cost/unit 10$ Inventory holding cost/unit/month 2$ Marginal cost of stockout/unit/month 5$ Hiring […]

5 Pages | January 8, 2021
978-0134731889 Example Example D

978-0134731889 Example Example D

D-Solar Onshore or Offshore D-Solar Onshore or Offshore Onshore assumptions Sales Price € 70.00 Decision Tree 0.24 k 0.1 Variable Cost € 40.00 Transition 0.56 Fixed Cost € 1,000,000.00 Probabilities 0.06 0.14 Period 2 Evaluation D E Sales Production Cost […]

3 Pages | January 8, 2021
978-0134731889 Example Example Trips Logistics

978-0134731889 Example Example Trips Logistics

Trips Logistics Discounted Cash Flows—Trips Logistics Demand 100,000 units Revenue per Unit 1.22$ Warehouse Space 1,000 sq ft per 1000 units Lease Cost 1.00$ Spot Market Cost 1.20$ Discount Rate 0.10 Expected Annual Profit if Warehousing Spacee Is Obtained from […]

5 Pages | January 8, 2021
978-0134731889 Example Examples 1 – 4

978-0134731889 Example Examples 1 – 4

Week Demand Level Forecast Forecast Error 1120 2127 3114 4122 120.75 5125 122 120.75 -4.25 Week Demand Level Forecast Forecast Error 0 120.75 1120 120.675 120.75 0.75 2127 121.308 120.68 -6.33 3114 120.577 121.31 7.31 4122 120.719 120.58 -1.42 5 […]

4 Pages | January 8, 2021
978-0134731889 Example Trips Logistics Example

978-0134731889 Example Trips Logistics Example

Trips Logistics Example • Demand = 100,000 units • 1,000 sq. ft. of space for every 1,000 units of demand • Revenue = $1.22 per unit of demand • Sign a three-year lease or obtain warehousing space on the spot […]

9 Pages | January 8, 2021
978-0134731889 Examples

978-0134731889 Examples

Example 16-1 Pricing to Multiple Segments Differential Pricing Constant Pricing w/o capacity constraint Production Capacity = 4,000 Segment Price Demand Profit Segment Price Demand Profit 1 $141.7 2,166.67 $285,277.8 1 $88.33 3,233.40 $253,272 2 $79.2 1,833.33 $126,805.6 2 $88.33 1,466.80 […]

9 Pages | January 8, 2021
978-0134731889 Examples Chapter14

978-0134731889 Examples Chapter14

Input Data Number of suppliers = 4 Number of retail stores = 8 Demand per store from each supplier = 120,000 Fixed cost per truck = 1,000$ Truck capacity = 40,000 Holding cost per unit per year = 0.20$ Cost […]

4 Pages | January 8, 2021
978-0134731889 Examples Chapter15

978-0134731889 Examples Chapter15

Example 15-1: Impact of Local Optimization Inputs Independent Retailer Vertically Integrated Supply Chain Mean Demand, μ1,000 1,000 Standard Deviation of demand 300 300 Retailer’s Cost, c = 5$ Retailer’s Sale price, p = 10$ Retailer’s Salvage value, s = b […]

4 Pages | January 8, 2021
978-0134731889 Examples Section 13 6

978-0134731889 Examples Section 13 6

No constraint Ordering Multiple Products with Demand Uncertainty High End Mid Range Retail price, p150$ 100$ Purchase price, c50$ 40$ Salvage price, s35$ 25$ Mean demand, µ1,000 2,000 S.D. of demand, σ300 400 Available Capacity 3,000 Cost of Understocking, Cu100$ […]

5 Pages | January 8, 2021
978-0134731889 Examples Table 13 – 5

978-0134731889 Examples Table 13 – 5

Table 13-5 (Benetton) Simulation – Tailored postponement Demand distribution Mean, µSD, σSale price = 50$ Color 1 1,000 500 Option 1 cost = 20$ Color 2 1,000 500 Option 2 cost = 22$ Color 3 1,000 500 Clearance price = […]

9 Pages | January 8, 2021
978-0134731889 Excel Figure 5 – 8

978-0134731889 Excel Figure 5 – 8

table11.2 Steel Appliances (Figure 5-8) Sources/ $/Ton Mile Tons Markets FnDnxnyndn Buffalo 0.90 500 700 1200 1389 Memphis 0.95 300 250 600 650 St. Louis 0.85 700 225 825 855 Atlanta 1.50 225 600 500 781 Boston 1.50 150 1050 […]

1 Pages | January 8, 2021
978-0134731889 Excel Figures 5 – 3 To 5 – 7

978-0134731889 Excel Figures 5 – 3 To 5 – 7

Inputs – Costs, Capacities, Demands Fixed Low Fixed High Supply Region N. America S. America Europe Asia Africa Cost ($) Capacity Cost ($) Capacity N. America 81 92 101 130 115 6,000 10 9,000 20 S. America 117 77 108 […]

1 Pages | January 8, 2021
978-0134731889 Excel Figures 5 – 9 To 5 – 12

978-0134731889 Excel Figures 5 – 9 To 5 – 12

Table 5-2 HighOptic Inputs – Costs, Capacities, Demands (HighOptic) Fixed Capa- Supply City Atlanta Boston Chicago Denver Omaha Portland Cost ($) city Baltimore 1,675 400 685 1,630 1,160 2,800 7,650 18 Cheyenne 1,460 1,940 970 100 495 1,200 3,500 24 […]

7 Pages | January 8, 2021
978-0134731889 Exercise – Exercise Answers

978-0134731889 Exercise – Exercise Answers

Chapter 9: Sales and Operations Planning We define a comprehensive set of decision variables that are utilized in Exercises 9-1–9- 3 depending on the problem context. Decision Variables: Ht = # of workers hired in month t (t = 1,..,12) […]

9 Pages | January 8, 2021
978-0134731889 Exercise – Exercise Answers Part 1

978-0134731889 Exercise – Exercise Answers Part 1

1 Chapter 11: Managing Economies of Scale in the Supply Chain: Cycle Inventory Exercise Solutions 1. Harley-Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported between the two plants using trucks, […]

13 Pages | January 8, 2021
978-0134731889 Exercise – Exercise Answers Part 2

978-0134731889 Exercise – Exercise Answers Part 2

20 TL is preferred for demand above 3,056. For part (b), the threshold is 6,111. Set Cell B17 = 6111 in worksheet Ex 11-18. As unit cost increases, LTL is preferred over a wider range of demand. For part (c), […]

14 Pages | January 8, 2021
978-0134731889 Exercise 5 – 1

978-0134731889 Exercise 5 – 1

State Total # of trips Trips from LA Cost from LA Trips from Tulsa Cost from Tulsa Trips from Denver Cost from Denver Trips from Seattle Cost from Seattle Demand Constraints Washington 40 – 150 – 250 40 200 – […]

3 Pages | January 8, 2021
978-0134731889 Exercise 5 – 2

978-0134731889 Exercise 5 – 2

DryIce Inc. Facilities Planning New York Shipped from NY Atlanta Shipped from Atlanta Chicago Shipped from Chicago San Diego Shipped from San Diego Requirements Supply Fixed Costs 200k 6,000,000 5,500,000 5,600,000 6,100,000 400k 10,000,000 9,200,000 9,300,000 10,200,000 Variable Costs East […]

1 Pages | January 8, 2021
978-0134731889 Exercise 5 – 3

978-0134731889 Exercise 5 – 3

Minimum 50% Capacity US Shipment Germany Shipment Japan Shipment Brazil Shipment India Shipment Demand (ton/yr) N. America 600 100 1,300 160 2,000 – 1,200 10 2,200 – 270 – S. America 1,200 – 1,400 – 2,100 – 800 190 2,300 […]

3 Pages | January 8, 2021
978-0134731889 Exercise 5 – 4

978-0134731889 Exercise 5 – 4

Market Demands and Duties Markets N. America S. America Europe (EU) Europe (Non EU) Japan Rest of Asia/Australia Africa Sleekfon Demand 10 420 3 2 2 1 Sturdyfon Demand 12 1 4 8 7 3 1 Total 22 524 11 […]

9 Pages | January 8, 2021
978-0134731889 Exercise 5 – 5

978-0134731889 Exercise 5 – 5

Market Demands and Duties Markets N. America S. America Europe (EU) Europe (Non EU) Japan Rest of Asia/Australia Africa Sleekfon Demand 10 4.8 20 3.6 2 6 1.2 Sturdyfon Demand 12 1.2 4 9.6 7 9 1.2 Total 22 6 […]

4 Pages | January 8, 2021
978-0134731889 Exercise 5 – 6

978-0134731889 Exercise 5 – 6

Production and Transport Cost per Unit (‘000s of Rupees) Additional Capacity Variables North East West South Current Capacity 150 300 150 300 150 300 150 300 150 300 Chennai 20 19 17 15 300 Chennai 0 0 0 0 0 […]

1 Pages | January 8, 2021
978-0134731889 Exercise 5 – 7

978-0134731889 Exercise 5 – 7

Input Data Northeast Southeast Midwest South West Kentucky 185 180 175 175 200 150 1,000 0.27 Pennsylvania 170 190 180 200 220 200 1,500 0.27 N. Carolina 180 180 185 185 215 200 1,500 0.22 California 220 220 195 195 […]

2 Pages | January 8, 2021
978-0134731889 Exercise 5 – 8

978-0134731889 Exercise 5 – 8

Input Data North East South West Capacity Annual Fixed Cost Tax Rate France 100 110 110 100 50 1,000 0.25 Germany 95 105 105 105 50 1,000 0.25 Finland 90 100 115 110 40 850 0.3 30 15 20 35 […]

5 Pages | January 8, 2021
978-0134731889 Exercise 6 – 1

978-0134731889 Exercise 6 – 1

Excersise 6-1: Moon Micro Current Capacity 10,000 Option 1: Add Capacity to Santa Clara Plant E(Incremental Profit Option 1) Server Sales Price $15,000 Additional Capacity 10,000 $58,000,000 Raw Material/Server $8,000 Annualized Fixed Cost 10,000,000$ Labor/Server 500$ E(Incremental Profit Option 2) […]

1 Pages | January 8, 2021
978-0134731889 Exercise 6 – 2

978-0134731889 Exercise 6 – 2

Exercise 6-2: Unipart Discount Rate 20% Option 1: Parts4u.com Option 1 Expected Cost Commission 5% $10,917,969 Option 2: AllMRO Option 2 Expected Cost 2 Year Fee $10,000,000 $10,516,927 Commission 1% Cost of B2B Marketplace at T=0 Past Year Year 1 […]

1 Pages | January 8, 2021
978-0134731889 Exercise 6 – 3

978-0134731889 Exercise 6 – 3

Exercise 6-3: Alphacap Option 1: Multichem Cost/Unit 1.20$ Discount Rate 20% Expected Cost of Option 1 Option 2: Mixemat $208,281 Cost/Unit 0.90$ High Demand Max 90,000 Expected Cost of Option 2 $257,930 Spot Market High Demand Price 4.00$ Low Demand […]

1 Pages | January 8, 2021
978-0134731889 Exercise 7 – 1

978-0134731889 Exercise 7 – 1

Exercise 7-1: ABC Corporation Sales Year 1 Year 2 Year 3 Year 4 Year 5 JAN 2,000 3,000 2,000 5,000 5,000 p = 12 (even) FEB 3,000 4,000 5,000 4,000 2,000 MAR 3,000 3,000 5,000 4,000 3,000 APR 3,000 5,000 […]

2 Pages | January 8, 2021
978-0134731889 Exercise 7 – 10

978-0134731889 Exercise 7 – 10

Exercise 7-10: Dishwashers Deseasonalized Analysis (to estimate initial values) Year Quarter Period Sales Deseasonalized Level Level from Regression Seasonal Factor Seasonal Factor Estimate Regression – Deseasonalized Level vs. Period 0 1I 11,934 0.94 II 21,276 0.45 Regression Statistics III 33,991 […]

3 Pages | January 8, 2021
978-0134731889 Exercise 7 – 2

978-0134731889 Exercise 7 – 2

Exercise 7-2: Hot Pizza Week Demand Week Demand Week Demand 1108 596 9112 2116 6119 10 102 3118 796 11 92 4124 8102 12 91 Period Demand Level Forecast EtAtBias MSE MAD Percent Error MAPE TS 1108 2116 3118 4124 […]

1 Pages | January 8, 2021
978-0134731889 Exercise 7 – 3

978-0134731889 Exercise 7 – 3

Exercise 7-3: Flowers Exponential Smoothing Year Quarter Period Sales Level Forecast EtAtBias MSE MAD Percent Error MAPE TS Regression – Sales vs. Period 0 132.6 1I 198 129.1 132.6 34.6 34.6 34.6 1194.6 34.6 35.3 35.3 1.00 Regression Statistics II […]

2 Pages | January 8, 2021
978-0134731889 Exercise 7 – 4

978-0134731889 Exercise 7 – 4

Static Method Sales Year 1 Year 2 Year 3 Year 4 Year 5 JAN 2,000 3,000 2,000 5,000 5,000 FEB 3,000 4,000 5,000 4,000 2,000 MAR 3,000 3,000 5,000 4,000 3,000 APR 3,000 5,000 3,000 2,000 2,000 MAY 4,000 5,000 […]

5 Pages | January 8, 2021
978-0134731889 Exercise 7 – 5

978-0134731889 Exercise 7 – 5

Exercise 7-5: Hot Pizza Week Demand Week Demand Week Demand 1108 596 9112 2116 6119 10 102 3118 796 11 92 4124 8102 12 91 Alpha = 0.1 Period Demand Level Forecast EtAtBias MSE MAD Percent Error MAPE TS 0106 […]

1 Pages | January 8, 2021
978-0134731889 Exercise 7 – 6

978-0134731889 Exercise 7 – 6

Exercise 7-6 A&D Electronics Exponential Smoothing Period Sales Level Forecast EtAtBias MSE MAD Percent Error MAPE TS 0 1,659 1 1,000 1,461 1,659 659 659 659 434,281 659 66 66 1.00 2 1,113 1,357 1,461 348 348 1,007 277,797 504 […]

2 Pages | January 8, 2021
978-0134731889 Exercise 7 – 7

978-0134731889 Exercise 7 – 7

Exercise 7-7 A&D Electronics Holt’s Model Holt’s model with alpha = 0.5 and beta = 0.5 Period Sales Level Trend Forecast EtAtBias MSE MAD Percent Error MAPE TS 0948 109 1 1,000 1,029 94.8 1,057 57 57 57 3,249 57 […]

2 Pages | January 8, 2021
978-0134731889 Exercise 7 – 8

978-0134731889 Exercise 7 – 8

Exercise 7-8 Period Demand Level Forecast EtAtBias MSE MAD Percent Error MAPE TS 1517 2510 3557 4498 5498 516 6444 501 516 72 72 72 5,184 72 16.2 16.2 1.00 7526 505 501 -25 25 47 2,895 32 4.7 10.4 […]

1 Pages | January 8, 2021
978-0134731889 Exercise 7 – 9

978-0134731889 Exercise 7 – 9

Exercise 7-9: Smartphones Deseasonalized Analysis (to estimate initial values) Year Quarter Period Sales Deseasonalized Level Level from Regression Seasonal Factor Seasonal Factor Estimate Regression – Deseasonalized Level vs. Period 0 1I 1513 0.50 II 2932 0.79 Regression Statistics III 3 […]

3 Pages | January 8, 2021
978-0134731889 Exercise 8 – 1

978-0134731889 Exercise 8 – 1

Input Data (Demand) Input Data (Costs etc.) Month Demand Item Cost January 1,000 Materials cost/unit 20$ February 1,100 Inventory holding cost/unit/month 3.0 March 1,000 Marginal cost of stockout/unit/month April 1,200 Hiring and training cost/worker May 1,500 Layoff cost/worker June 1,600 […]

3 Pages | January 8, 2021
978-0134731889 Exercise 8 – 2

978-0134731889 Exercise 8 – 2

Input Data (Demand) Input Data (Costs etc.) Month Demand Item Cost January 1,000 Materials cost/unit 20$ February 1,100 Inventory holding cost/unit/month 3.0 March 1,000 Marginal cost of stockout/unit/month April 1,200 Hiring and training cost/worker May 1,500 Layoff cost/worker June 1,600 […]

3 Pages | January 8, 2021
978-0134731889 Exercise 8 – 3

978-0134731889 Exercise 8 – 3

Input Data (Demand) Input Data (Costs etc.) Month Demand Item Cost January 1,000 Materials cost/unit 20.0 February 1,100 Inventory holding cost/unit/month 3.0 March 1,000 Marginal cost of stockout/unit/month April 1,200 Hiring and training cost/worker 800.0 May 1,500 Layoff cost/worker 1,200.0 […]

3 Pages | January 8, 2021
978-0134731889 Exercise 8 – 4

978-0134731889 Exercise 8 – 4

Input Data (Demand) Input Data (Costs etc.) Month Routers Switches Item Router Switch January 1,800 1,600 Materials cost/unit February 1,600 1,400 Inventory holding cost/unit/month 3.0 1.0 March 2,600 1,500 Marginal cost of stockout/unit/month April 2,500 2,000 Hiring and training cost/worker […]

5 Pages | January 8, 2021
978-0134731889 Exercise 8 – 5

978-0134731889 Exercise 8 – 5

Input Data (Demand) Input Data (Costs etc.) Month Routers Switches Item Router Switch January 1,800 1,600 Materials cost/unit February 1,600 1,400 Inventory holding cost/unit/month 3.0 1.0 March 2,600 1,500 Marginal cost of stockout/unit/month April 2,500 2,000 Hiring and training cost/worker […]

6 Pages | January 8, 2021
978-0134731889 Exercise 8 – 5(b)

978-0134731889 Exercise 8 – 5(b)

Input Data (Demand) Input Data (Costs etc.) Month Routers Switches Item Router Switch January 1,800 1,600 Materials cost/unit February 1,600 1,400 Inventory holding cost/unit/month 3.0 1.0 March 2,600 1,500 Marginal cost of stockout/unit/month April 2,500 2,000 Hiring and training cost/worker […]

6 Pages | January 8, 2021
978-0134731889 Exercise 8 – 6

978-0134731889 Exercise 8 – 6

Input Data (Demand) Input Data (Costs etc.) Month Routers Switches Item Router Switch January 1,800 1,600 Materials cost/unit February 1,600 1,400 Inventory holding cost/unit/month 3.0 1.0 March 2,600 1,500 Marginal cost of stockout/unit/month April 2,500 2,000 Hiring and training cost/worker […]

6 Pages | January 8, 2021
978-0134731889 Exercise 8 – 6(b)

978-0134731889 Exercise 8 – 6(b)

Input Data (Demand) Input Data (Costs etc.) Month Routers Switches Item Router Switch January 1,800 1,600 Materials cost/unit February 1,600 1,400 Inventory holding cost/unit/month 3.0 1.0 March 2,600 1,500 Marginal cost of stockout/unit/month April 2,500 2,000 Hiring and training cost/worker […]

6 Pages | January 8, 2021
978-0134731889 Exercise 8 – 7

978-0134731889 Exercise 8 – 7

Input Data (Demand) Input Data (Costs etc.) Month Routers Switches Item Router Switch January 1,800 1,600 Materials cost/unit February 1,600 1,400 Inventory holding cost/unit/month 3.0 1.0 March 2,600 1,500 Marginal cost of stockout/unit/month April 2,500 2,000 Hiring and training cost/worker […]

5 Pages | January 8, 2021
978-0134731889 Exercise 9 – 1

978-0134731889 Exercise 9 – 1

Data Input Data Demand Forecast Costs Month Demand Forecast Item Cost January 10,000 Materials cost/unit 40$ February 11,000 Inventory holding cost/unit/month 3$ March 15,000 Marginal cost of stockout/unit/month April 18,000 Hiring and training cost/worker May 25,000 Layoff cost/worker June 26,000 […]

3 Pages | January 8, 2021
978-0134731889 Exercise 9 – 2

978-0134731889 Exercise 9 – 2

Data Input Data Demand Forecast Costs Month Demand Forecast Item Cost January 10,000 Materials cost/unit 40$ February 11,000 Inventory holding cost/unit/month 3$ March 15,000 Marginal cost of stockout/unit/month April 18,000 Hiring and training cost/worker 1,000$ May 25,000 Layoff cost/worker 2,000$ […]

3 Pages | January 8, 2021
978-0134731889 Exercise 9 – 3

978-0134731889 Exercise 9 – 3

Data Input Data Demand Forecast Costs Month Demand Forecast Item Cost January 10,000 Materials cost/unit 40$ February 11,000 Inventory holding cost/unit/month 3$ March 15,000 Marginal cost of stockout/unit/month April 18,000 Hiring and training cost/worker May 25,000 Layoff cost/worker June 26,000 […]

3 Pages | January 8, 2021
978-0134731889 Exercise 9 – 4

978-0134731889 Exercise 9 – 4

Data Input Data Demand Forecast Costs Month Demand Forecast Item Cost January 12,000 Materials cost/unit 35$ February 11,000 Inventory holding cost/unit/month 4$ March 14,000 Marginal cost of stockout/unit/month April 20,000 Hiring and training cost/worker May 25,000 Layoff cost/worker June 27,000 […]

3 Pages | January 8, 2021
978-0134731889 Exercise 9 – 5

978-0134731889 Exercise 9 – 5

Data Input Data Demand Forecast Costs Month Demand Forecast Item Cost January 280 Materials cost/ton 1,000$ February 301 Inventory holding cost/ton/month 100$ March 277 Marginal cost of stockout/unit/month April 302 Hiring and training cost/worker May 285 Layoff cost/worker June 278 […]

3 Pages | January 8, 2021
978-0134731889 Exercise 9 – 6

978-0134731889 Exercise 9 – 6

Data Input Data Demand Forecast Costs Month Demand Forecast Item Cost January 280 Materials cost/ton 1,000$ February 301 Inventory holding cost/ton/month 100$ March 277 Marginal cost of stockout/unit/month April 302 Hiring and training cost/worker May 285 Layoff cost/worker June 278 […]

3 Pages | January 8, 2021
978-0134731889 Exercise Answer Part 1

978-0134731889 Exercise Answer Part 1

1 Chapter 5: Network Design in the Supply Chain Exercise Solutions 1. (a) The objective of this model is to decide optimal locations of home offices, and number of trips from each home office, so as to minimize the overall […]

9 Pages | January 8, 2021
978-0134731889 Exercise Answer Part 2

978-0134731889 Exercise Answer Part 2

12 1 1 1 1 1 ( (1 ) ) Subject to 1,…, (5.1) (1 ) 1,…, (5.2) 1 0 1,…, n n m i i i i i i i ij ij i i j n ij j i […]

9 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 1

978-0134731889 Exercise Ex 11 – 1

VALUES Exercise 11-1: Harley Davidson Input Demand, D = 109,500 (assuming 365 operating days) Fixed cost per order, S= 1,000$ Cost per engine, C = 500$ Holding cost, h=20% Output EOQ = 1,480 # of orders per year 74 Annual […]

6 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 10

978-0134731889 Exercise Ex 11 – 10

separate Lot Sizing with Multiple Products Ordered and Delivered Separately Annual demand for A, DA = 20,000 Annual demand for B, DB = 2,500 Annual demand for C, DC = 900 Product specific ordering cost, sA = 100$ Product specific […]

3 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 11

978-0134731889 Exercise Ex 11 – 11

Exercise 11-11 Input Annual demand for Ford spare parts, D11,200 Annual demand for GM parts, D21,440 Cost per Ford part, C1100$ Cost per GM part, C2100$ Holding cost, h 20% Fixed cost per shipment, S 500$ Ford and GM Ship […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 12

978-0134731889 Exercise Ex 11 – 12

Ex. 11.12 check All Unit Discount (Exercise 11-12) Fixed cost per order = 400.00$ per order Monthly demand = 20,000 sq. feet Holding percentage = 0.2 0 Pricing: Min Qty Max Qty Price per sq. ft. 0 19,999 1.00$ 20,000 […]

8 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 13

978-0134731889 Exercise Ex 11 – 13

Ex. 11.13 check All Unit Discount (Exercise 11-13) Fixed cost per order = 400.00$ per order Monthly demand = 20,000 sq. feet Holding cost = 20% Pricing: Min Qty Max Qty Price per sq. ft. 0 29,999 5.00$ 30,000 40,000 […]

4 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 14

978-0134731889 Exercise Ex 11 – 14

Ex. 11.14 check Marginal Unit Quantity Discount (Exercise 11-14) Fixed cost per order = 400.00$ Monthly demand = 20,000 sq. feet Holding percentage = 20% % Pricing: Min Qty Max Qty Price per sq. ft. 0 30,000 5.00$ 30,000 100,000 […]

4 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 15

978-0134731889 Exercise Ex 11 – 15

Ex. 11.15 check All Unit Discount (Exercise 11-15) Fixed cost per order = 500.00$ per order Monthly demand = 5,000 Holding percentage = 25% Pricing: Min Qty Max Qty Price per sq. ft. 0 9,999 200.00$ 10,000 19,999 195.00$ 20,000 […]

4 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 16

978-0134731889 Exercise Ex 11 – 16

Ex. 11.16 check Marginal Unit Quantity Discount (Exercise 11-16) Fixed cost per order = 500.00$ Monthly demand = 5,000 Holding percentage = 25% Pricing: Min Qty Max Qty Price per phone 0 10,000 200.00$ 10,000 20,000 195.00$ 20,000 190.00$ Range […]

4 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 17

978-0134731889 Exercise Ex 11 – 17

Trade Promotions (Exercise 11-17) No PROMO With PROMO Weekly Demand 1,000 10,000 Fixed Order Cost 200$ 200$ Holding Cost 25% 25% Manufacturer’s Sale Price to Dominick’s 2.00$ 1.80$ Optimal Lot Size w/o promo 6,450 Optimal Lot Size w/ promo (Eqn […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 18

978-0134731889 Exercise Ex 11 – 18

Input Data Placement cost per order 100.00$ TL cost per Truck 400.00$ LTL cost per unit 1.00$ Unit cost 50.00$ Holding cost 20% Truck Capacity 1000 Intermediate Calculations Fixed cost per order using TL (S) 500.00$ Fixed cost per order […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 19

978-0134731889 Exercise Ex 11 – 19

Input Data Placement cost per order 100.00$ TL cost per Truck 800.00$ # suppliers Cost / Supplier Order Size Quantity on Truck Pickup cost per supplier 100.00$ 2 6,000$ 600 1,200 LTL cost per unit 1.00$ 1 7,746 775 775 […]

3 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 2

978-0134731889 Exercise Ex 11 – 2

Exercise 11-2: Harley Davidson Part a Inputs Demand, R = 109,500 (assuming 365 operating days) Fixed cost per order, S=1,000$ Cost per engine, C = 500$ Holding cost, h=20% Order quantity 100 Outputs # of orders per year 1,095 Annual […]

2 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 20

978-0134731889 Exercise Ex 11 – 20

Input Data Setup cost per batch 200.00$ Cost per pound of fiber 5.00$ Holding cost 20% Production rate / hour 100.00 Setup time per batch 0.5 Intermediate Calculations Holding cost per unit (H) 1.00$ Product Annual Demand Optimal Batch Size […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 21

978-0134731889 Exercise Ex 11 – 21

Truckload Lot Sizing with Multiple Customers Delivered Truckloads Separately Annual demand for Large customer, RL = 60 Annual demand for Medium customer, RM = 24 Annual demand for Small customer, RS = 8 Customer specific delivery cost, sL = 250$ […]

4 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 22

978-0134731889 Exercise Ex 11 – 22

Input Data Retailer Annual Demand 240,000 Order cost per lot 200$ Unit cost 5$ Holding cost 20% Crunchy Order cost per lot 1,000$ Unit cost 3$ Holding cost 20% Retailer Orders Independently Orders Optimize Joint Costs Economic Quantity Ordered by […]

3 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 23

978-0134731889 Exercise Ex 11 – 23

Supply Chain Coordination with Commodity Products Integrated Mill Steel Service Center Monthly Demand 50 50 Fixed Order Cost 4,000$ 2,000$ Holding Cost 20% 25% Cost 1,000.00$ 2,000.00$ Sale Price 2,000.00$ Optimal Lot Size with Independent Ordering 69.28 Sum of Order […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 24

978-0134731889 Exercise Ex 11 – 24

Retailer Retail price p775.00$ Demand 450,000 Profit 101,250,000$ Orange Company Wholesale price 550.00$ Cost 100.00$ Profit 202,500,000$ Retailer Retail price p755.00$ Demand 490,000 Profit 120,050,000$ Discount passed along by retailer 20.00$ Orange Company Discount 40.00$ Wholesale price after discount 510.00$ […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 25

978-0134731889 Exercise Ex 11 – 25

Annual demand, D450000 Order cost per lot, S10,000.00$ Unit cost, C550.00$ Holding cost 20% Economic order quantity 9,045 Per unit discount, d40.00$ Quantity ordered by retailer 16,814 We start with calculating the economic order quantity for the retailer. Now we […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 26

978-0134731889 Exercise Ex 11 – 26

Truckload Lot Sizing with Truckload Sourcing from Each Supplier Annual demand for Large customer, RL = 120,000 Annual demand for Medium customer, RM = 60,000 Annual demand for Small customer, RS = 12,000 Customer specific delivery cost, sL = 400$ […]

4 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 27

978-0134731889 Exercise Ex 11 – 27

Input Data Retailer Annual Demand 120,000 Order cost per lot 100 € Unit cost 10 € Holding cost 20% AZOR Order cost per lot 1,600 € Unit cost 5 € Holding cost 25% Retailer Orders Independently Orders Optimize Joint Costs […]

2 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 3

978-0134731889 Exercise Ex 11 – 3

Exercise 11-3 Input Annual demand, D 6,000 Cost per jacket, C 100.00$ Holding cost, h 25% Fixed cost per order, S 100.00$ Replenishment Order of 500 Batch size, Q 500 Annual holding cost 6,250.00$ Annual order cost 1,200.00$ Total annual […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 4

978-0134731889 Exercise Ex 11 – 4

Exercise 11-4: Target Input Annual demand, D 2,400,000 Cost per unit, C 10.00$ Holding cost, h 20% Fixed transportation cost per order 5,000.00$ Fixed clerical cost per order 500.00$ Variable shipping cost per unit 0.10$ Intermediate Calculation Fixed cost incurred […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 5

978-0134731889 Exercise Ex 11 – 5

Exercise 11-5 Input Annual demand, D 240,000 Cost per unit, C 100.00$ Holding cost, h 20% Fixed cost per order, S 4,000.00$ Optimal Order Policy Optimal batch size, Q* 9,798 Annual holding cost 97,979.59$ Annual order cost 97,979.59$ Total annual […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 6

978-0134731889 Exercise Ex 11 – 6

Exercise 11-6 Input Annual demand, D 120,000 Cost per unit, C 500.00$ Holding cost, h 20% Fixed cost per order, S 4,000$ Desired Order Size of 10,000 Desired optimal order size, Q* 10000 Required fixed cost S* 41,666.67$ Desired Order […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 7

978-0134731889 Exercise Ex 11 – 7

Exercise 11-7: Production lot sizing Input Annual demand, D 260 Production rate, P 1,040 Cost per unit, C 2,000.00$ Holding cost, h 25% Fixed cost per order, S 10,000.00$ Optimal Lot Size Economic production quantity, QP118 Number of setups per […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 8

978-0134731889 Exercise Ex 11 – 8

Exercise 11-8: Production lot sizing Input Annual demand, D 260 Production rate, P 1,040 Cost per unit, C 2,000.00$ Holding cost, h 25% Required Changeover Cost Desired economic production quantity, QP40 Required changeover cost, S 1,153.85$

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 11 – 9

978-0134731889 Exercise Ex 11 – 9

Exercise 11-9 Input Annual demand for tablets/smartphones, D1120,000 Annual demand for laptops, D248,000 Cost per tablet/smartphone, C1100$ cost per laptop, C2400$ Holding cost, h 25% Fixed cost per shipment, S 10,000$ Two Products Are Shipped Separately Optimal order size for […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 1

978-0134731889 Exercise Ex 12 – 1

Exercise 12-1: Apple Store Inputs Average demand per unit time, D = 500 Lead time, L = 4 SD of demand per unit time, σD = 300 Target cycle service level 0.95 Distribution of Demand during Lead Time Mean demand […]

3 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 10

978-0134731889 Exercise Ex 12 – 10

Excercise 12-10: Inputs Average demand per unit time, D = 1,000 Lead time from Chinese supplier, L = 8 SD of demand per unit time, σD = 1000 Holding cost, h = 25% Target cycle service level 0.99 Distribution of […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 11

978-0134731889 Exercise Ex 12 – 11

Exercise 12-11: Inputs Average demand per unit time, D = 500 Lead time from Chinese supplier, L = 9 SD of demand per unit time, σD = 300 SD of lead time for Chinese supplier, sL6 Holding cost, h = […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 12

978-0134731889 Exercise Ex 12 – 12

Value of Aggregation (Problem 12.12) Demand per period (weekly) per location, Di = 300 Standard deviation of demand, sD = 300 Ave replenishment lead time, L (weeks)= 3 Standard deviation over L, σL (weeks)= 520 Desired cycle service level, CSL […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 13

978-0134731889 Exercise Ex 12 – 13

Value of Aggregation (Problem 12.13) Demand per period (weekly) per location, Di = 100 Standard deviation of demand, sD = 80 Ave replenishment lead time, L (weeks)= 4 Standard deviation over L, σL (weeks)= 160 Desired cycle service level, CSL […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 14

978-0134731889 Exercise Ex 12 – 14

Exercise 12-14: The Gap Inputs Khaki Pants Cashmere Sweaters Expected demand, D 800 50 Lead time, L 4 4 SD of demand per unit time, σD100 50 Target cycle service level, CSL 0.95 0.95 Costs per unit 30 100 Holding […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 15

978-0134731889 Exercise Ex 12 – 15

Exercise 12-15: Epson Inputs Weekly Demand for Epson Printers in Europe Country Mean Demand Standard Deviation France 3,000 2,000 Germany 4,000 2,200 Spain 2,000 1,400 Italy 2,500 1,600 Portugal 1,000 800 UK 4,000 2,400 Lead time (weeks) 8 Target cycle […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 16

978-0134731889 Exercise Ex 12 – 16

Exercise 12-16: Epson Inputs Weekly Demand for Epson Printers in Europe Country Mean Demand Standard Deviation France 3,000 2,000 Germany 4,000 2,200 Spain 2,000 1,400 Italy 2,500 1,600 Portugal 1,000 800 UK 4,000 2,400 Lead time, L 8 Expedited lead […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 17

978-0134731889 Exercise Ex 12 – 17

Exercise 12-17: Epson Inputs Weekly Demand for Epson Printers in Europe Country Mean Demand Standard Deviation France 3,000 2,000 Germany 4,000 2,200 Spain 2,000 1,400 Italy 2,500 1,600 Portugal 1,000 800 UK 4,000 2,400 Lead time 8 Target cycle service […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 18

978-0134731889 Exercise Ex 12 – 18

Input Data Mean daily demand, D = 5000 Standard deviation of daily demand, sD = 4000 Desired cycle service level, CSL = 0.99 Cost per phone, C = 100$ Holding cost, h = 20% Outputs for Continuous Review Policy Sea […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 19

978-0134731889 Exercise Ex 12 – 19

Exercise 12-19: Inputs Average demand per unit time, D = 1,000 Lead time, L = 4 SD of demand per unit time, σD = 400 Review Interval, T = 8 Target cycle service level 0.95 Distribution of Demand during T […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 2

978-0134731889 Exercise Ex 12 – 2

Exercise 12-2: Gap Inputs Average demand per unit time, D = 100 Lead time, L = 3 SD of demand per unit time, σD = 50 Reorder Point, ROP 350 Distribution of Demand during Replenishment Lead Time Mean demand during […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 20

978-0134731889 Exercise Ex 12 – 20

Exercise 12-20: Inputs Average demand per unit time D = 3,000 Lead time, L = 4 SD of demand per unit time σD = 1,000 Review Interval T = 12 Orde Up to Leve (OUL) 50,000 Distribution of Demand during […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 21

978-0134731889 Exercise Ex 12 – 21

Input Data Mean daily demand, D = 5000 Standard deviation of daily demand, sD = 4000 Desired cycle service level, CSL = 0.99 Cost per phone, C = 100$ Holding cost, h = 20% Outputs for Periodic Review Policy Sea […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 22

978-0134731889 Exercise Ex 12 – 22

Input Data Mean daily demand, D = 300 Mean daily demand, D = 300 Standard deviation of daily demand, sD = 100 Standard deviation of daily demand, sD = 100 Replenishment lead time, L = 2Replenishment lead time, L = […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 23

978-0134731889 Exercise Ex 12 – 23

Evaluating Safety Inventory Given Fill Rate Input Demand per period (week), D = 300 Standard deviation of demand, sD = 100 Replenishment lead time, L = 2 Desired fill rate = 0.999 ESC Goal (from fill rate) = 1.50 Input […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 24

978-0134731889 Exercise Ex 12 – 24

Value of Aggregation (Problem 12.24) Demand per period (daily) per location, Di = 300 Standard deviation of demand, sD = 50 Ave replenishment lead time, L (days)= 3 Reorder interval (T) = 7 Standard deviation over L+T, σL+T = 158 […]

2 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 25

978-0134731889 Exercise Ex 12 – 25

Value of Aggregation (Problem 12.25) Popular Variant at Large Dealer Popular Variant at Small Dealer Demand per period (weekly) per location, Di = 50 Demand per period (weekly) per location, Di = 10 Standard deviation of demand, sD = 15 […]

2 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 26

978-0134731889 Exercise Ex 12 – 26

Value of Aggregation (Problem 12.26) High Volume Variant Low Volume Variants Demand per period (weekly) per location, Di = 1000 Demand per period (weekly) per location, Di = 28 Standard deviation of demand, sD = 200 Standard deviation of demand, […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 3

978-0134731889 Exercise Ex 12 – 3

Exercise 12-3: Best Buy Inputs Average demand per unit time, D = 300 Lead time, L = 2 SD of demand per unit time, σD = 200 Target cycle service level 0.95 Distribution of Demand during Lead Time Mean demand […]

5 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 4

978-0134731889 Exercise Ex 12 – 4

Exercise 12-4: Best Buy Inputs Average demand per unit time, D = 300 Lead time, L = 2 SD of demand per unit time, σD = 200 Review interval, T = 3 Target cycle service level (CSL) 0.95 Distribution of […]

2 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 5

978-0134731889 Exercise Ex 12 – 5

Exercise 12-5: Best Buy Inputs Average demand per unit time, D = 300 Lead time, L = 2 SD of demand per unit time, σD = 200 Lot size, Q= 500 Target fill rate, fr 0.99 Distribution of Demand during […]

2 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 6

978-0134731889 Exercise Ex 12 – 6

Excercise 12-6: Hewlett Packard Inputs Average demand per unit time, D = 250 Lead time, L = 2 SD of demand per unit time, σD = 150 Order quantity, Q = 1,000 Reorder Point ROP 600 Distribution of demand during […]

2 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 7

978-0134731889 Exercise Ex 12 – 7

Exercise 12-7: Sam’s Club Inputs Average demand per unit time, D = 250 SD of demand per unit time, σD = 150 Lead time, L = 2.00 Standard deviation of lead time, σL = 1.50 Order quantity Q= 1000 Target […]

3 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 8

978-0134731889 Exercise Ex 12 – 8

Exercise 12-8: Walmart Inputs Average demand per unit time, D = 3,000 Lead time, L = 2 SD of demand per unit time, σD = 700 Order quantity, Q= 10,000 Reorder Point, ROP 7,000 Distribution of Demand during Replenishment Lead […]

1 Pages | January 8, 2021
978-0134731889 Exercise Ex 12 – 9

978-0134731889 Exercise Ex 12 – 9

Exercise 12-9: Target Inputs Average demand per unit time, D = 1000 Lead time, L = 2 SD of demand per unit time, σD = 300 Order quantity Q= 5000 Desired fill rate, fr 0.99 Distribution of Demand during L […]

1 Pages | January 8, 2021
978-0134731889 Exercise Exercise Answers Part 1

978-0134731889 Exercise Exercise Answers Part 1

1 Chapter 12: Managing Uncertainty in a Supply Chain: Safety Inventory Exercise Solutions 1. Excel Worksheet Ex 12-1 illustrates these computations. 2. Excel Worksheet Ex 12-2 illustrates these computations. Copyright © 2019 Pearson Education, Inc. 2 3. Excel Worksheet Ex […]

9 Pages | January 8, 2021
978-0134731889 Exercise Exercise Answers Part 2

978-0134731889 Exercise Exercise Answers Part 2

12 16. Excel Worksheet Ex 12–16 illustrates these computations. (a) Disaggregated Option: From the previous problem, we know that the total ss for Europe is 48,384 (Cell C41) Holding cost = (200)(0.25)(48,384) = $2,419,200 Aggregated Option: ss = 20,681 (Cell […]

9 Pages | January 8, 2021
978-0134731889 Exercise Exercises 6 5 6 6 7

978-0134731889 Exercise Exercises 6 5 6 6 7

Problem 6-5 Discount Factor 0.1 Current Capacity in Asia = 2,400,000 Current Capacity in N. America = 4,200,000 Current Annual Demand in Asia = 2,000,000 No Addition Current Annual Demand in N. America = 4,000,000 Year 0 Year 1 Year […]

5 Pages | January 8, 2021
978-0134731889 Exercises 13 – 1

978-0134731889 Exercises 13 – 1

Exercise 13-1: Green Thumb Inputs Anticipated demand 100 Standard deviation 40 Unit costs $150 Sales price $200 Disposal value $50 Inventory holding costs $20 Salvage value $30 Cost of understocking $50 Cost of overstocking $120 Outputs Optimal cycle service level […]

2 Pages | January 8, 2021
978-0134731889 Exercises 13 – 10

978-0134731889 Exercises 13 – 10

Problem 13-10: Sport Obermeyer Inputs Expected demand 4,000 Standard deviation of demand 1,750 Unit cost, c$80 Sales price, p$125 Price to outlet stores $70 Inventory holding costs $10 Salvage value, s$60 Cost of understocking, CU$45 Cost of overstocking, CO$20 Outputs […]

2 Pages | January 8, 2021
978-0134731889 Exercises 13 – 11

978-0134731889 Exercises 13 – 11

Exercise 13.11: DoorRed Pharmacy Inputs Expected demand per day, D40 Standard deviation of demand, σD5 Order quantity, Q200 Reorder point, ROP 45 Replenishment lead time in days, L1 Unit costs, C$4 Inventory holding costs, h25% Distribution of demand during lead […]

3 Pages | January 8, 2021
978-0134731889 Exercises 13 – 12

978-0134731889 Exercises 13 – 12

Exercise 13-12: Lake Grove Confectionaries Inputs Box 1 Box 2 Box 3 Box 4 Expected demand, D20,000 20,000 20,000 20,000 Standard deviation of demand, σD8,000 8,000 8,000 8,000 Unit costs, C$10 $10 $10 $10 Sales price, p$20 $20 $20 $20 […]

3 Pages | January 8, 2021
978-0134731889 Exercises 13 – 13

978-0134731889 Exercises 13 – 13

Exercise 13-13: The Knitting Company Inputs Style 1 Style 2 Style 3 Style 4 Expected demand, D30,000 8,000 8,000 8,000 Standard deviation of demand, σD5,000 4,000 4,000 4,000 Unit costs, C$20 $20 $20 $20 Sales price, p$35 $35 $35 $35 […]

3 Pages | January 8, 2021
978-0134731889 Exercises 13 – 14

978-0134731889 Exercises 13 – 14

Problem 13-14 Without Discount With Discount Inputs Inputs Expected demand 20,000 Expected demand 20,000 Standard deviation of demand 8,000 Standard deviation of demand 8,000 Unit cost, c$30 Unit cost, c$28 Sales price, p$95 Sales price, p$95 Salvage value, s$0 Salvage […]

1 Pages | January 8, 2021
978-0134731889 Exercises 13 – 15

978-0134731889 Exercises 13 – 15

Problem 13-15 Without Discount With Discount Inputs Inputs Expected demand 70,000 Expected demand 70,000 Standard deviation of demand 25,000 Standard deviation of demand 25,000 Unit cost, c$3 Unit cost, c$2.75 Sales price, p$10 Sales price, p$10 Salvage value, s$0 Salvage […]

1 Pages | January 8, 2021
978-0134731889 Exercises 13 – 16

978-0134731889 Exercises 13 – 16

Exercise 13-16: Electronics Manufacturer Inputs 40-GB 20-GB 6-GB Expected demand, D20,000 40,000 80,000 Standard deviation of demand, σD7,000 11,000 16,000 Unit costs, C$100 $90 $70 Sales price, p$200 $150 $100 Discount price $0 $0 $0 Inventory holding costs for season […]

3 Pages | January 8, 2021
978-0134731889 Exercises 13 – 17

978-0134731889 Exercises 13 – 17

Exercise 13-17: Ski Jackets Inputs High end Mid range Low end Expected demand, D600 1,000 2,000 Standard deviation of demand, σD400 500 600 Unit costs, C$120 $100 $70 Sales price, p$300 $200 $110 Discount price $0 $0 $0 Inventory holding […]

3 Pages | January 8, 2021
978-0134731889 Exercises 13 – 2

978-0134731889 Exercises 13 – 2

Exercise 13-2: Green Thumb Inputs Problem 1 Improved Forecasting Anticipated demand 100 100 Standard deviation 40 15 Unit costs $150 $150 Sales price $200 $200 Disposal value $50 $50 Inventory holding costs $20 $20 Salvage value $30 $30 Cost of […]

2 Pages | January 8, 2021
978-0134731889 Exercises 13 – 4

978-0134731889 Exercises 13 – 4

Exercise 13-4: Champion Inputs Current Policy South America Option Anticipated demand 20,000 20,000 Standard deviation 10,000 10,000 Unit costs $30 $30 Sales price $60 $60 Disposal value $25 $30 Inventory holding costs $5 $5 South America sale price $35 Shipping […]

2 Pages | January 8, 2021
978-0134731889 Exercises 13 – 5

978-0134731889 Exercises 13 – 5

Exercise 13-5: Snoblo Inputs Reguplo Each of the other models Reguplo Each of the other models Anticipated demand 10,000 1,000 10,000 1,000 Standard deviation 1,000 700 1,000 700 Unit costs $100 $110 $90 $120 Sales price $200 $220 $200 $220 […]

2 Pages | January 8, 2021
978-0134731889 Exercises 13 – 6

978-0134731889 Exercises 13 – 6

Exercise 13-6: AnyLogo Inputs IBM AT&T HP Cisco Anticipated demand 5,000 7,000 4,000 4,000 Standard deviation 2,000 2,500 2,000 2,200 Unit costs $15 $15 $15 $15 Sales price $50 $50 $50 $50 Disposal value $6 $6 $6 $6 Inventory holding […]

2 Pages | January 8, 2021
978-0134731889 Exercises 13 – 7

978-0134731889 Exercises 13 – 7

Exercise 13-7 Analysis when embroidery is in Sri Lanka Inputs IBM AT&T HP Cisco Aggregation Anticipated demand 5,000 7,000 4,000 4,000 20,000 Standard deviation 2,000 2,500 2,000 2,200 4,369 Unit costs $15 $15 $15 $15 $18 Sales price $50 $50 […]

2 Pages | January 8, 2021
978-0134731889 Exercises 13 – 8

978-0134731889 Exercises 13 – 8

Input data Cost of overstocking, Co = 0.50$ Cost of understocking, Cu = 1.00$ Mean demand 50,000 Standard deviation of demand = 15,000 Optimal CSL = 0.67 Optimal order quantity = 56,461 Input data Cost of overstocking, Co = 0.50$ […]

2 Pages | January 8, 2021
978-0134731889 Exercises 13 – 9

978-0134731889 Exercises 13 – 9

Input data for order size = 6,000 Mean demand = 5,000 Standard deviation of demand = 2,000 Cost of overstocking, Co40.00$ Order size = 6,000 Cycle service level, CSL = 0.691 Implied cost of understocking, Cu89.64$ Input data for order […]

1 Pages | January 8, 2021
978-0134731889 Exercises 15 – 7

978-0134731889 Exercises 15 – 7

15.7 Quantity Flexibility Contract order O1000 α0.2 β0.2 Q1200 q800 prod cost 1$ wholesale price 6$ retail price 10$ retail salvage –$ mfg salvage –$ μ1,000 σ300 F(q) 0.2525 F(Q) 0.7475 (Q- μ)/ σ0.67 (q- μ)/ σ(0.67) fs(Q) 0.3195 fs(q) […]

2 Pages | January 8, 2021
978-0134731889 Exercises 15 – 8

978-0134731889 Exercises 15 – 8

15.8 Quantity Flexibility Contract order O1000 α0.2 β0.2 Q1200 q800 production cost 1$ wholesale price 1$ retail price 10$ retail salvage –$ mfg salvage –$ μ1,000 σ300 F(q) 0.2525 F(Q) 0.7475 (Q- μ)/ σ0.67 (q- μ)/ σ(0.67) fs(Q) 0.3195 fs(q) […]

2 Pages | January 8, 2021
978-0134731889 Exercises 16 – 1

978-0134731889 Exercises 16 – 1

16-1 Felgas Capacity/day 1,000 1 week LT Rev/unit 5.00$ 1 day LT Rev/unit 10.00$ Mean demand with 1 day LT 250 SD of demand with 1 day LT 100 Amount to reserve for last day 250 16-1 Felgas Capacity/day 1,000 […]

2 Pages | January 8, 2021
978-0134731889 Exercises 16 – 2

978-0134731889 Exercises 16 – 2

16-2 Go Go Bunny Total Bunnies Available 100,000 Discount margin 4.00$ High service margin 8.00$ High service mean 400,000 1 day LT SD 150,000 Optimal desired amount for high service channel (Equation 16.4) 400,000 Amount for high service channel 100,000 […]

2 Pages | January 8, 2021
978-0134731889 Exercises 16 – 3

978-0134731889 Exercises 16 – 3

16-3 Warehouse Unused space mean 20,000 Unused space SD 10,000 Rev/incremental foot 3.00$ Cost/extra foot 3.00$ Unused spaced distribution is known s* (Equation 16.6) 0.50 O* (Equation 16.7) 20,000 16-3 Warehouse Unused space mean 17,647 Unused space SD 10,588 Rev/incremental […]

2 Pages | January 8, 2021
978-0134731889 Exercises 16 – 4

978-0134731889 Exercises 16 – 4

16-4 Trucking Capacity 200,000 Bulk rev/cubic ft, pL0.10$ Avg spot rev/cubic ft, pH0.13$ Spot mean demand, µ 60,000 Spot sd demand, σ 20,000 p* (Equation 16.3) 0.77 Q* (Equation 16.4) 45,274 16-4 Trucking Capacity 200,000 Bulk rev/cubic ft 0.10$ Avg […]

2 Pages | January 8, 2021
978-0134731889 Exercises 16 – 5

978-0134731889 Exercises 16 – 5

16-5 Warehouse Lease rate/sq ft, cB0.50$ Spot rate/sq ft, cS0.70$ Warehouse mean demand, µ500,000 Warehouse sd, σ150,000 p* (Equation 16.9) 0.29 Q* (Equation 16.10) 415,108 16-5 Warehouse Lease rate/sq ft 0.50$ Spot rate/sq ft 0.70$ Warehouse mean 500,000 Warehouse sd […]

2 Pages | January 8, 2021
978-0134731889 Exercises 16 – 6

978-0134731889 Exercises 16 – 6

Problem 16.6 Production cost per unit = 200 Segment Price Demand Profit Customized $1,100.00 9,000 $8,100,000 Standard $766.67 17,000 $9,633,333 Total 26,000 $17,733,333 Problem 16.6 (Constrained case using Solver and Equation 16.2) Production cost per unit = 200 Production Capacity […]

2 Pages | January 8, 2021
978-0134731889 Exercises 16 – 7

978-0134731889 Exercises 16 – 7

Problem 16.7 Segment Production Cost Price Demand Profit Customized 300.00 $1,150.00 8,500 $7,225,000 Standard 200.00 $766.67 17,000 $9,633,333 Total 25,500 $16,858,333 Problem 16.7 (Using Solver and Equation 16.2) Production Capacity = 20,000 Segment Price Demand Production Cost Profit Customized $1,287.50 […]

2 Pages | January 8, 2021
978-0134731889 Exercises 16 – 8

978-0134731889 Exercises 16 – 8

Problem 16.8 Production cost per unit = 200$ Cost of additional capacity = 25$ per bike Additional capacity acquired = 5,500 Available Production Capacity = 25,500 Segment Price Demand Profit Customized $1,112.50 8,875 $8,098,438 Standard $779.17 16,625 $9,628,646 Total 25,500 […]

1 Pages | January 8, 2021
978-0134731889 Exercises 16 – 9

978-0134731889 Exercises 16 – 9

Problem 16.9 Quantity at beginning of season = 5,000 Period Price Demand Revenue 1 50.00$ 1,500.00 75,000$ 2 50.00$ 1,000.00 50,000$ 3 50.00$ 500.00 25,000$ Total 3,000.00 150,000$ Problem 16.9 Quantity at beginning of season = 5,000 Period Price Demand […]

3 Pages | January 8, 2021
978-0134731889 Exercises Answers To Exercises

978-0134731889 Exercises Answers To Exercises

Copyright © 2019 Pearson Education, Inc. 1 Chapter 16: Pricing and Revenue Management in a Supply Chain Exercise Solutions 1. Worksheet 16-1 presents this solution. The amount of production capacity to reserve is: p* = (5/10) = 0.5 (Equation 16.3) […]

7 Pages | January 8, 2021
978-0134731889 Exercises Exercise 15 – 1

978-0134731889 Exercises Exercise 15 – 1

Buyback Contracts Inputs Mean Demand, μ20,000 Standard Deviation of demand 5,000 Barnes & Noble’s Cost, c = 12$ Barnes & Noble’s Sale price, p = 24$ Barnes & Noble’s Salvage value, s = b = 3$ Publisher’s Cost, v1$ Publisher’s […]

2 Pages | January 8, 2021
978-0134731889 Exercises Exercise 15 – 2

978-0134731889 Exercises Exercise 15 – 2

Buyback Contracts Inputs Mean Demand, μ10,000 Standard Deviation of demand 5,000 VideosRUs’s Cost, c = 10$ VideosRUs’s Sale price, p = 19.99$ VideosRUs’s Salvage value, s = b = 4.99$ Studio’s Cost, v1$ Studio’s Sale price, c10$ Studio’s buyback price, […]

2 Pages | January 8, 2021
978-0134731889 Exercises Exercise 15 – 3

978-0134731889 Exercises Exercise 15 – 3

Inputs Whole sale price, c = 3$ Production cost, v = 2$ Retail price, p = 15$ Discount price, sR1$ Revenue share fraction, f = 0.35 Mean demand = 5,000 SD of demand = 2,000 Topgun’s Response Optimal cycle service […]

2 Pages | January 8, 2021
978-0134731889 Exercises Exercise 15 – 4

978-0134731889 Exercises Exercise 15 – 4

Inputs Mean Demand 4,000 Standard Deviation of Demand 1,600 Benetton’s Sale Price, c = 36.00$ Benetton’s Cost, v = 20.00$ Salvage value for Benetton, sm = 10.00$ Retailer’s Sale Price, p = 55.00$ Salvage value, sr = 25.00$ Order size, […]

1 Pages | January 8, 2021
978-0134731889 Exercises Exercise 15 – 5

978-0134731889 Exercises Exercise 15 – 5

15.5 Demand avg/week 100 sd/week 50 Holding cost 25% CSL 0.95 Supplier 1: Reliable Supplier 2: Value Cost/unit $5,000 Cost/unit $4,800 min batch 100 min batch 1000 Lead time (wks) 1 Lead time (wks) 5 SD of LT (wks) 0.1 […]

1 Pages | January 8, 2021
978-0134731889 Exercises Exercise 15 – 6

978-0134731889 Exercises Exercise 15 – 6

15.6 Demand avg/week 100 sd/week 50 Holding cost 25% CSL 0.95 Supplier 1: Reliable Supplier 2: Value Cost/unit $5,000 Cost/unit $4,800 min batch 100 min batch 800 Lead time (wks) 1 Lead time (wks) 4 SD of Lead Time (wks) […]

1 Pages | January 8, 2021
978-0134731889 Exercises Exercise Answers

978-0134731889 Exercises Exercise Answers

CHAPTER 15 Sourcing Decisions in a Supply Chain 1. EXCEL Worksheet 15-1 illustrates these computations: With no buyback: See worksheet 15-1 a&b = + = + =912 12 * CCC CSL ou u 0.571 Optimal lot size = ),,( ** […]

9 Pages | January 8, 2021
978-0134731889 Exercises Exercise Answers V2

978-0134731889 Exercises Exercise Answers V2

Chapter 13 Exercise Solutions 1. EXCEL worksheet 13-1 illustrates these computations: Copyright © 2019 Pearson Education, Inc. = + = + =12050 50 * CCC CSL ou u 0.2941 (Cell C30) Optimal lot size = ** NORMINV( , , ) […]

9 Pages | January 8, 2021
978-0134731889 Goodstone Tire Corporation Sells Tires

978-0134731889 Goodstone Tire Corporation Sells Tires

Exercise 13-3: Goodstone Tires Inputs Anticipated demand per week 2,000 Standard deviation 500 Order quantity 10,000 Reorder point 6,000 Replenishment lead time in weeks 2 Unit costs $40 Sales price $80 Inventory holding costs 25% Cost of understocking $80 Distribution […]

2 Pages | January 8, 2021
978-0134731889 Related Article Abstract On Remanufacturing And Recycling

978-0134731889 Related Article Abstract On Remanufacturing And Recycling

Reducing End-of-life Waste: Repair, Recondition, Remanufacture or Recycle? Copyright © 2019 Pearson Education, Inc. Dr Andrew M King* Lecturer in Engineering Design Department of Mechanical Engineering University of Bristol Bristol, BS8 1TR United Kingdom Email: andrew.king@bris.ac.uk Tel: 44 (0) 117 […]

9 Pages | January 8, 2021
978-0134731889 Related Article Full Report On Banking Of Allowances Part 1

978-0134731889 Related Article Full Report On Banking Of Allowances Part 1

Electronic copy available at: http://ssrn.com/abstract=2021733 Discussion Papers Banking of Surplus Emissions Allowances Does the Volume Matter? Karsten Neuhoff, Anne Schopp, Rodney Boyd, Kateryna Stelmakh and Alexander Vasa 1196 Deutsches Institut für Wirtschaftsforschung 2012 Opinions expressed in this paper are those […]

9 Pages | January 8, 2021
978-0134731889 Related Article Full Report On Banking Of Allowances Part 2

978-0134731889 Related Article Full Report On Banking Of Allowances Part 2

Banking of emissions allowances – does the volume matter? March 2012 Page 10 between the volume of unused allowances and the hedging demand by power generators. For all emission scenarios considered, this gap will remain positive through 2020. If emissions […]

9 Pages | January 8, 2021
978-0134731889 Simulation Chapter13 – Lands End – Simulation

978-0134731889 Simulation Chapter13 – Lands End – Simulation

Ordering and Pricing at Land’s End Cost of sweaters = 50$ Sale Price in winter catalog = 150$ Mean demand from winter catalog = 3,000 SD of demand from winter catalog = 1,000 Mean discounted demand = 250 SD of […]

9 Pages | January 8, 2021
978-0134731889 Test Bank Chapter 01 Part 1

978-0134731889 Test Bank Chapter 01 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 1 Understanding the Supply Chain 1.1 True/False Questions 1) A supply chain could be more accurately described as a supply network or supply web. Answer: TRUE Diff: 1 Topic: 1.1: […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 01 Part 2

978-0134731889 Test Bank Chapter 01 Part 2

27) The objective of the customer order arrival process is to A) get the correct orders to customers by the promised due date at the lowest possible cost. B) maintain a record of product receipt and complete payment. C) maximize […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 02 Part 1

978-0134731889 Test Bank Chapter 02 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 2 Achieving Strategic Fit in a Supply Chain 2.1 True/False Questions 1) A company’s competitive strategy defines the set of customer needs that it seeks to satisfy through its products […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 02 Part 2

978-0134731889 Test Bank Chapter 02 Part 2

27) The curve that shows the lowest possible cost for a given level of responsiveness is referred to as the A) supply chain responsiveness curve. B) supply chain efficiency curve. C) cost-responsiveness efficient frontier. D) responsiveness spectrum. Answer: C Diff: […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 03 Part 2

978-0134731889 Test Bank Chapter 03 Part 2

30) ________ typically measures the cost of bringing product into a facility as a percentage of sales or cost of goods sold (COGS). A) Average outbound transportation cost B) Average inbound transportation cost C) Average incoming shipment size D) Average […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 04 Part 1

978-0134731889 Test Bank Chapter 04 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 4 Designing Distribution Networks and Applications to e-Business 4.1 True/False Questions 1) Distribution occurs between every pair of stages in the supply chain. Answer: TRUE Diff: 2 Topic: 4.1: Factors […]

11 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 04 Part 2

978-0134731889 Test Bank Chapter 04 Part 2

18 38) What type of distribution network is shown in this diagram? A) Distributor storage with carrier delivery B) Manufacturer/distributor storage with customer pickup C) Distributor storage with last-mile delivery D) Manufacturer storage with direct shipping Answer: D Diff: 2 […]

10 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 05 Part 1

978-0134731889 Test Bank Chapter 05 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 5 Network Design in the Supply Chain 5.1 True/False Questions 1) Supply chain network design decisions include the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity […]

11 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 05 Part 2

978-0134731889 Test Bank Chapter 05 Part 2

46) Which of these is considered a hard infrastructure requirement? A) Utilities B) Community receptivity to business C) Availability of skilled labor D) Workforce turnover Answer: A Diff: 2 Topic: 5.3: Framework for Network Design Decisions AACSB: Application of knowledge […]

10 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 06 Part 1

978-0134731889 Test Bank Chapter 06 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 6 Designing Global Supply Chain Networks 6.1 True/False Questions 1) Decisions made during the supply chain design phase regarding significant investments in the supply chain, such as the number and […]

11 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 06 Part 2

978-0134731889 Test Bank Chapter 06 Part 2

36) A negative NPV (net present value) for an option indicates that the option will A) gain money for the supply chain. B) lose money for the supply chain. C) maximize profit for the supply chain. D) minimize profit for […]

11 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 07 Part 1

978-0134731889 Test Bank Chapter 07 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 7 Demand Forecasting in a Supply Chain 7.1 True/False Questions 1) The forecast of demand forms the basis for all strategic and planning decisions in a supply chain. Answer: TRUE […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 07 Part 2

978-0134731889 Test Bank Chapter 07 Part 2

37) What is the trend component of Holt’s model for period 0? A) -2.5 B) 10.3 C) 2.5 D) 6.4 Answer: B Diff: 3 Topic: 7.3: Time-Series Forecasting Methods AACSB: Analytical thinking Objective: LO 7.3: Forecast demand using time-series methodologies […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 09 Part 1

978-0134731889 Test Bank Chapter 09 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 9 Sales and Operations Planning: Planning Supply and Demand in a Supply Chain 9.1 True/False Questions 1) Predictable variability is change in demand that cannot be forecasted. Answer: FALSE Diff: […]

12 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 09 Part 2

978-0134731889 Test Bank Chapter 09 Part 2

44) In general, as the fraction of increased demand coming from forward buying grows, offering the promotion during the peak demand period becomes A) less attractive. B) more attractive. C) more profitable. D) less significant. Answer: A Diff: 2 Topic: […]

12 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 10 Part 1

978-0134731889 Test Bank Chapter 10 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 10 Coordination in a Supply Chain 10.1 True/False Questions 1) Supply chain coordination requires each stage of the supply chain to take into account the impact its actions have on […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 10 Part 2

978-0134731889 Test Bank Chapter 10 Part 2

34) A manufacturer with significant market power should use A) two-part tariffs and volume discounts to achieve coordination. B) lot-size-based quantity discounts to achieve coordination. C) forward-buying with retail coupons to achieve coordination. D) liquidators and reverse-buying to achieve coordination. […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 11 Part 1

978-0134731889 Test Bank Chapter 11 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 11 Managing Economies of Scale in a Supply Chain: Cycle Inventory 11.1 True/False Questions 1) Cycle inventory exists because producing or purchasing in large lots allows a stage of the […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 11 Part 2

978-0134731889 Test Bank Chapter 11 Part 2

35) In the pricing schedule for marginal unit quantity discounts, A) the average cost of a unit decreases at a breakpoint. B) the average cost of a unit increases at a breakpoint. C) the marginal cost of a unit decreases […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 12 Part 1

978-0134731889 Test Bank Chapter 12 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 12 Managing Uncertainty in a Supply Chain: Safety Inventory 12.1 True/False Questions 1) Safety inventory is inventory carried for the purpose of satisfying demand that exceeds the amount forecasted for […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 12 Part 2

978-0134731889 Test Bank Chapter 12 Part 2

34) The expected shortage per replenishment cycle (ESC) is A) the units of demand that are satisfied from inventory out of stock in a given replenishment cycle. B) the units of demand that are satisfied from inventory in stock in […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 13 Part 1

978-0134731889 Test Bank Chapter 13 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 13 Linking Product Availability to Profits 13.1 True/False Questions 1) A supply chain can use a high level of product availability to improve its responsiveness and attract customers. Answer: TRUE […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 13 Part 2

978-0134731889 Test Bank Chapter 13 Part 2

38) A retailer places an order for the new Bagpipe 2018™ from the supplier and takes note of the demand pattern. They use this knowledge of the demand to place a second order of Bagpipe 2018 from the supplier. This […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 14 Part 1

978-0134731889 Test Bank Chapter 14 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 14 Transportation in a Supply Chain 14.1 True/False Questions 1) Transportation plays a key role in every supply chain because products are usually produced and consumed in the same location. […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 14 Part 2

978-0134731889 Test Bank Chapter 14 Part 2

33) The Mumbai dabbawalas have a transportation network that at the beginning of each day is best described as A) a milk run. B) direct shipping to a single destination. C) a tailored network. D) direct shipping from source to […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 15 Part 1

978-0134731889 Test Bank Chapter 15 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 15 Sourcing Decisions in a Supply Chain 15.1 True/False Questions 1) Sourcing processes include the selection of suppliers, design of supplier contracts, product design collaboration, procurement of material, and evaluation […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 15 Part 2

978-0134731889 Test Bank Chapter 15 Part 2

30) Supplier performance should be compared based on A) purchase price alone. B) its impact on total cost. C) the supplier’s quality of material. D) the ability of the supplier to coordinate forecasting and planning. Answer: B Diff: 3 Topic: […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 16 Part 1

978-0134731889 Test Bank Chapter 16 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 16 Pricing and Revenue Management in a Supply Chain 16.1 True/False Questions 1) Revenue management is the use of marketing to increase the profit generated from a limited supply of […]

11 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 16 Part 2

978-0134731889 Test Bank Chapter 16 Part 2

33) A shortage of capacity (or inventory) occurs when A) there are excessive cancellations. B) there are few cancellations. C) an expensive backup needs to be arranged. D) B and C only Answer: B Diff: 1 Topic: 16.3: Dynamic Pricing […]

10 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 17 Part 1

978-0134731889 Test Bank Chapter 17 Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 17 Sustainability and the Supply Chain 17.1 True/False Questions 1) A focus on sustainability allows a supply chain to better serve more environmentally conscious customers while often improving supply chain […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter 17 Part 2

978-0134731889 Test Bank Chapter 17 Part 2

30) ________ tend to be significant consumers of energy and water and emitters of waste and greenhouse gases and thus offer significant opportunities for profitable improvement. A) Employees B) Production processes C) Facilities D) Vehicles Answer: C Diff: 2 Topic: […]

9 Pages | August 15, 2020
978-0134731889 Test Bank Chapter Part 1

978-0134731889 Test Bank Chapter Part 1

Supply Chain Management: Strategy, Planning, and Operation, 7e (Chopra) Chapter 3 Supply Chain Drivers and Metrics 3.1 True/False Questions 1) Cash to case (C2C) is the duration of time from when cash enters the process as cost to when it […]

9 Pages | August 15, 2020
Chapter 08 A Poor Aggregate Plan Can Result In

Chapter 08 A Poor Aggregate Plan Can Result In

Scenario 8.3 — Mousetraps A company faces the aggregate planning problem shown in the table below. Cost of regular production is $15 per unit, the cost of producing the same unit on overtime is $22.50, the cost of subcontracting is […]

9 Pages | August 15, 2020