Reference no: EM133430432

Question

1. Conduct an ABC analysis using the data provided on the population of US Metropolitan Statistical Areas and Micropolitan Statistical Areas. Describe how you chose the cutoff points for the categories (A, B, and C). Assume these are values for revenue from the products a company sells rather than population estimates. How would the purchasing requirements differ for products in these different categories? Discuss the make or buy decision, methods of description, forecasting and inventory policy.

2. Compare and contrast a fixed order quantity and fixed order interval inventory policy. Discuss the differences under both conditions of certainty and conditions of uncertainty (safety stock). How do safety stock levels for a given service level differ between the two, and when would each be preferred over the other?

3. Using examples related to a specific product, describe the various elements of the cost of service listed in the book and discuss the accuracy with which each of these costs might be estimated. Based on this information, which type of quality cost would be most preferable?