Archives: Solution Manual
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) […]
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 $4,800 min batch 100 min batch 1000 Lead time (wks) 1 Lead time (wks) 5 SD of LT (wks) 0.1 […]
978-0134731889 Exercises Exercise 15 – 4
Inputs Mean Demand 4,000 Standard Deviation of Demand 1,600 Benetton’s Sale Price, c = 36.00$ 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, […]
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 […]
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, […]
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 […]
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) […]
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) […]
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 […]
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 […]
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 […]
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’ […]
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 […]
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 […]
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 […]
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 […]
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( , , ) […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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$20 Outputs […]
978-0134731889 Exercises 13 – 9
Input data for order size = 6,000 Mean demand = 5,000 Standard deviation of demand = 2,000 Cost of overstocking, Co40.00$ Order size = 6,000 Cycle service level, CSL = 0.691 Implied cost of understocking, Cu89.64$ Input data for order […]
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$ […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 $120 Outputs Optimal cycle service level […]
978-0134731889 Examples Table 13 – 5
Table 13-5 (Benetton) Simulation – Tailored postponement Demand distribution Mean, µSD, σSale price = 50$ 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 = […]
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$ […]
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 […]
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 […]
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 […]
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) = $2,419,200 Aggregated Option: ss = 20,681 (Cell […]
978-0134731889 Exercise Exercise Answers Part 1
1 Chapter 12: Managing Uncertainty in a Supply Chain: Safety Inventory Exercise Solutions 1. Excel Worksheet Ex 12-1 illustrates these computations. 2. Excel Worksheet Ex 12-2 illustrates these computations. Copyright © 2019 Pearson Education, Inc. 2 3. Excel Worksheet Ex […]
978-0134731889 Exercise Ex 12 – 26
Value of Aggregation (Problem 12.26) High Volume Variant Low Volume Variants Demand per period (weekly) per location, Di = 1000 Demand per period (weekly) per location, Di = 28 Standard deviation of demand, sD = 200 Standard deviation of demand, […]
978-0134731889 Exercise Ex 12 – 25
Value of Aggregation (Problem 12.25) Popular Variant at Large Dealer Popular Variant at Small Dealer Demand per period (weekly) per location, Di = 50 Demand per period (weekly) per location, Di = 10 Standard deviation of demand, sD = 15 […]
978-0134731889 Exercise Ex 12 – 24
Value of Aggregation (Problem 12.24) Demand per period (daily) per location, Di = 300 Standard deviation of demand, sD = 50 Ave replenishment lead time, L (days)= 3 Reorder interval (T) = 7 Standard deviation over L+T, σL+T = 158 […]
978-0134731889 Exercise Ex 12 – 23
Evaluating Safety Inventory Given Fill Rate Input Demand per period (week), D = 300 Standard deviation of demand, sD = 100 Replenishment lead time, L = 2 Desired fill rate = 0.999 ESC Goal (from fill rate) = 1.50 Input […]
978-0134731889 Exercise Ex 12 – 22
Input Data Mean daily demand, D = 300 Mean daily demand, D = 300 Standard deviation of daily demand, sD = 100 Standard deviation of daily demand, sD = 100 Replenishment lead time, L = 2Replenishment lead time, L = […]
978-0134731889 Exercise Ex 12 – 21
Input Data Mean daily demand, D = 5000 Standard deviation of daily demand, sD = 4000 Desired cycle service level, CSL = 0.99 Cost per phone, C = 100$ Holding cost, h = 20% Outputs for Periodic Review Policy Sea […]
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 […]
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 […]
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 […]