Explain a computer-supply mail order house has a memory chip, Operation Management

Assignment Help:

A computer-supply mail order house has a memory chip in inventory that it sells to customers around the country. A Japanese manufacturer supplies the item using airfreight. It has the following characteristics: Average annual demand = 3,200 Replenishment lead time = 1.5 weeks Carrying cost = 15% per year Purchase price, delivered = $55 per unit Procurement ordering cost = $35 per order a. Design a reorder point method of control for this item. b. What are the annual ordering and annual carrying costs if your design is used? c. Suppose that the lead time stretches to three weeks, so that the ROP>Q*. What adjustments would you suggest making in the control policy?


Related Discussions:- Explain a computer-supply mail order house has a memory chip

Layout and flow, what are the objectives that an operation should seek in o...

what are the objectives that an operation should seek in order to ensure a good layout

Describe the relevance of tqm, Explain the relevance of TQM in decision mak...

Explain the relevance of TQM in decision making and controlling processes.

Location planning, What are various decision criteria for deciding a locati...

What are various decision criteria for deciding a location for a business setup? Explain these decision criteria with reference to a location decision for setting up a

Forward scheduling - scheduling techniques, Forward Scheduling - Scheduling...

Forward Scheduling - Scheduling Techniques Forward scheduling means assigning customers orders or job to various work centers based on the as early as possible approach. Thus

Explain controlling stock levels of all the products at tep, Using Pareto a...

Using Pareto analysis, categorize the products into Classes A, B, C, based on usage value. Would this approach be useful for categorizing and controlling stock levels of all the pr

Explain artists and producers royalties, Downloading music, radio, and vide...

Downloading music, radio, and video programs from the Internet is easier than in the past, but some companies are still worried that people will illegally obtain copies of this pro

How measures are interpreted with operations management, Your project to ob...

Your project to obtain charitable donations is now 30 days into a planned 40-day project. The project is divided into three activities. The first activity is designed to solicit in

Explain why should be performed before signing a contract, What due diligen...

What due diligence should be performed before signing a contract?

Routing, Routing Meaning and Definition Routing is the first bu...

Routing Meaning and Definition Routing is the first but the important and difficult task of the production control. Routing means determination of path or route on whic

Loading, what is significance of loading?

what is significance of loading?

Write Your Message!

Captcha
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