Archives: Solution Manual
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 = […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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. […]
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 […]
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$ […]
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 […]
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$ […]
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 […]
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 […]
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$ […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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$
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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), […]
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, […]