Motor manufacturer is targeting a cycle service level

Assignment Help Operation Management
Reference no: EM13901305

Weekly demand for electric motors at a Japanese motor manufacturer is normally distributed, with a mean of 1,000 and a standard deviation of 1,000. Motors are currently assembled in China and delivered at a cost of 20,000 yen/motor. The supplier takes eight weeks to supply an order. A local Japanese manufacturer has offered to deliver motors with a lead time of one week at a cost of 20,400 yen per motor. The motor manufacturer is targeting a Cycle Service Level (Type I) of 99 percent and monitors its inventory continuously with (Q, r) policy. The manufacturer incurs a holding cost of 25 percent. Should the manufacturer accept the local supplier’s offer?

Reference no: EM13901305

Questions Cloud

Stewardship and sustainable resource : Discuss stewardship and sustainable resource use, as well as the issues or potential problems. What are the environmental implications of deforestation in the Amazon? Define stewardship and define sustainability.
What are upper and lower control limits for mean and range : Jim Jones is attempting to monitor a filling process that has an overall average of 705 cc. The average range is 6 cc. If you use a sample size of 10, what are the upper and lower control limits for the mean and range?
Higher carrying costs or less inventory-less carrying costs : Discuss the use of safety stock and how that relates to customer satisfaction. Would you error on having more inventory and higher carrying costs or less inventory and less carrying costs? Justify your answer.
Question regarding the sustainability guru : Imagine that you are the "sustainability guru" for the world. Identify the three most important features of your policies for using and managing
Motor manufacturer is targeting a cycle service level : Weekly demand for electric motors at a Japanese motor manufacturer is normally distributed, with a mean of 1,000 and a standard deviation of 1,000. Motors are currently assembled in China and delivered at a cost of 20,000 yen/motor. The motor manufac..
Discussion on cost estimation in health care : Discussion on Cost Estimation in Health Care
Alternative methods for maximizing food production : List pros and cons of three alternative methods for maximizing food production, decide on most successful, explain why. Identify two ways Haiti is misusing water supply, propose ways for better use of water available to them.
What is its expected monetary value : Michael Dell, president of Dell Computers, Inc., has two design options for his new high resolution flat screen monitors for CAD workstations. The life cycle sales forecast of the monitors is 100,000 units. We ignore any disposal cost in this problem..
What does mcclung mean by apostolic passion : What does McClung mean by “apostolic passion”? In the analogy of “The Wall and the Canyon,” which barrier keeps more people from following Christ within peoples without churches and why?

Reviews

Write a Review

 

Operation Management Questions & Answers

  Complete a strategic plan for your organization

Complete a strategic plan for your organization. Update your plan to incorporate facilitator feedback from the drafts you submitted in previous weeks. Include the following

  Strategy that whole foods market is pursuing

What are the chief elements of the strategy that Whole Foods Market is pursuing

  Case study - midtown motors

Midtown Motors, Inc. has hired a marketing services firm to develop an advertising strategy for promoting Midtown's used-car sales.

  Base case-alternate analysis-replacing existing equipment

Old equipment was purchased 3 years ago for 100,000 and was being depreciated using a MACRS 5 year asset class depreciation schedule. It was expected to have a 15,000 salvage value at the end of year 5 when it was planned to be sold. The company is c..

  What items need to be addressed in defining the scope

whose view and needs should be expressed in a project's scope? What items need to be addressed in defining the scope? Why are these items important to define?

  How cost estimation is impacted by project risk

Provide an example of how company culture can impact the project cost estimate and how cost estimation is impacted by project risk?

  What is an overview of the existing organization

what is An overview of the existing organization? and how to go about doing one.

  How many labor hours should simpson plan for

he found that the first unit took 2,000 labor hours, the second took 1,800 labor hours, and the third took 1692 hours. In a contract for 3 more units, how many labor hours should Simpson Plan for?

  Discuss the importance of baseline

What is the difference between a task dependency and a task constraint? What is the importance of a baseline.

  Successfully implemented strategic HRM initiatives

Identify an organization that successfully implemented strategic HRM initiatives. Present the initiatives and discuss the business strategies achieved as a result of the initiatives.

  Mean abolute deviation and mean absolute percent error

Discuss the basic difference between the mean abolute deviation and mean absolute percent error

  Describe the importance of personal selling as a part

Describe the importance of personal selling as a part of the marketing concept.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd