Question looking at the table below for the johnson company

Assignment Help Management Theories
Reference no: EM13348116

Question: Looking at the table below for the Johnson Company, what is the total annual cost of maintaining the components inventory under the present systems versus the total annual costs of maintaining the components inventory under the JIT system (assuming no safety stock)? What are the advantages and disadvantages of the Johnsons using a JIT system?

Johnson's inventory carrying costs are 20% per year on the average investment in inventory on hand including acquisition and transportation costs.  Second, under the current system, the number of units of each type of component kept in stock is calculated as follows: For those items purchased from the vendors more than 400 miles away, a safety stock representing four weeks of use is maintained. For items from vendors between 100 and 400 miles away, a safety stock representing two weeks of use is maintained. For items from closer sources, a safety stock representing one week of use is maintained. In addition to safety stocks, the average inventory of any item is the current lot size purchased, divided by 2.

Using JIT

 

Current System

 

 

 

Item

Unit Cost

JIT Lot Size

Avg. freight cost per Unit surface

 

 

Current lot

 size purchased

 

Average freight cost

per unit

Distance from vendor (in miles)

 

Number of units used each week

 

 

 

Unit cost

Wheels

$110

20

$24

400

$80

2,000

20

$240

Copper

105

10

20

120

$20

800

40

$60

Cables

20

8

4

125

$3

36

56

$16

Motor (large)

112

6

25

120

$16

20

12

$110

Motor (small)

85

2

12

15

$15

44

7

$95

Dampers

10

75

2

2,000

$2

490

675

$8

Batteries

(type D)

120

4

30

48

$11

1,800

18

$136

Cushions

5

70

0

1,400

None

3

824

$4

Screws

10

80

2

2,600

$1

48

540

$6

Protective Glass

7

50

3

1,060

$1

114

570

$14

Reference no: EM13348116

Previous Q& A

  Research paperwrite a research paper within organizational

research paperwrite a research paper within organizational research and theory.topics include1. environments shape

  1 cell proliferation and cell growth depend on

1 cell proliferation and cell growth depend on extracellular signal molecules called growth factors and mitogens. what

  Case studycontract law has neither a complete descriptive

case studycontract law has neither a complete descriptive theory explaining what the law is nor a complete normative

  Socket programming modify the translate program and

socket programming modify the translate program and dictionary program. modify the programs to handle multiple user

  Question 1 a mild steel bar 40 mm diameter and 100 mm long

question 1. a mild steel bar 40 mm diameter and 100 mm long is subjected to a tensile force along its axis.youngs

  Question 1 what are the responsibilities of the board of

question 1. what are the responsibilities of the board of directors?nbsp please give an example of a board of directors

  Question 1 write a technical description of the functions

question 1 write a technical description of the functions which are available on a workstation for new students who may

  Write a paper which explore results based management topic

write a paper which explore results based management topic and how it plays the role of project management in

  Question 1nbspheat capacities cv and cp are defined as

question 1nbspheat capacities cv and cp are defined as temperature derivatives respectively of u and h. show that the

  Stock

stock xmarketstock

Reviews

Write a Review

 

Similar Q& A

  Current strategy of a division of australian corporation

Current strategy of a division of major Australian corporation

  What are some of the foreign trade issues

What are some of the foreign trade issues you will have to deal with

  Need to add references or recommended reading

NEED TO ADD REFERENCES OR RECOMMENDED READING

  The assistant personnel manager at columbia packing company.

Please follow the instruction below: Summary Assignment Scenario For this assignment, you are writing as Doug Grant, the Assistant Personnel Manager at Columbia Packing Company.

  What project management tools

What project management tools do you feel are most useful and why?

  Apply the concepts and techniques of the module

The purpose of the Final Project is to apply the concepts and techniques of the module to the analysis of real-world situations or problems. You will be expected to use diverse sources of information and to carry out an original analysis rather than ..

  Theory of transtheoretical model

Demonstrate understanding of the many-sided nature of knowledge management

  Case study - sherwood systems and neudesic

What policies and procedures were used to ensure that each person took responsibility for their own tasks and identify the variety of issues involved in either scenario

  Health care information systems are important

Health Care Information Systems are important in dispensing of information throughout the organization. You will develop a research paper on a health care technology that has become essential to the sharing of information via electronic communication..

  A chopping board and a knife holder

A wood products firm uses available time at the end of each week to make goods for stock. Currently, two products on the list of items are produced for stock: a chopping board and a knife holder

  Explain social constructivist approaches to leadership

Analyze Grint's support for why it is helpful to study Constitutive/Social Constructivist approaches to leadership and give your critical assessment of why case he presents is compelling or not.

  The australian airline industry

(I)From the viewpoint of Qantas Airlines Limited (Qantas), use Porter's Five Forces framework to analyse the attractiveness (profitability) of the Australian airline industry.

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