Explain matching supply with demand, Operation Management

Assignment Help:

From "Matching Supply with Demand" Cachon/Terwiesch

(Inventory Cost) A manufacturing company producing medical devices reported $60,000,000 in sales over the last year. At the end of the same year, the company had $20,000,000 worth of inventory of ready-to-ship devices.

a. Assuming the units in inventory are valued (based on COGS) at $1000 per unit and are sold for $2000 per unit, how fast does the company turn it's inventory? The company uses a 25 percent per year cost of inventory. That is, for the hypothetical case that one unit of $1000 would sit exactly one year in inventory, the company charges its operations division a $250 inventory cost.

b. What - in absolute terms- is the per unit inventory cost for a product that costs $1000?


Related Discussions:- Explain matching supply with demand

Compute the probability that 5 stolen cars will be recover, According to po...

According to police sources a car with a certain protection system will be recovered 85% of the time. Find the probability that 5 of 7 stolen cars will be recovered.

Line balancing, What do you understand by “line balancing”? What happens if...

What do you understand by “line balancing”? What happens if balance doesn’t exist?

Explain logos and ethos and pathos, Explain what Logos, Ethos and Pathos ar...

Explain what Logos, Ethos and Pathos are and their relevance to being understood. Also discuss their preferred order of use. Construct an example following this model. Grading r

Explain fatigue and delay, a. You are chartered to set a time standard for ...

a. You are chartered to set a time standard for a worker assembling 96 piece jigsaw puzzles. The following times have been collected from five different operators with one observat

Explain what is the horizon value, Current and projected cash flows for Ran...

Current and projected cash flows for Randell Global Operatons are shown below. Growth is expected to be constant after 2012, and the weighted average cost of capital is 11%. What i

How performing the necessary paperwork, Annual demand for number 2 pencils ...

Annual demand for number 2 pencils at the campus store is normally distributed with mean 1,000 and standard deviation 250. The store purchases the pencils for 6 cents each and sell

Describe how hr evolved throughout this process, HR has moved from an admin...

HR has moved from an administrative function to a transformational function. This change is based on automating HR functions through an HRIS system. Explain how HR evolved througho

Draw a 3-sigma p-chart using this information, The results of inspection of...

The results of inspection of DNA samples taken over the past 10 days are given below. Sample size is 100. Days: 1 2 3 4 5 6 7 8 9 10 Defectives: 7 6 6 9 5 6 0 8 9 1 a) Con

Explain total quality improvement has changed healthcare, Analyze how total...

Analyze how total quality improvement has changed healthcare delivery on both the macro and micro levels.

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