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

Explain characteristics of a mature group, Identify and discuss the four di...

Identify and discuss the four distinguishing characteristics of a mature (well-functioning) group. Give an example of a mature group you have participated in and the application of

Explain the method of job evaluation, Explain the method of job evaluation....

Explain the method of job evaluation. Method of job evaluation: Following are the methods wherein job evaluation is done:- a) Ranking method. b) Classification method.

Net profit margin, Net profit margin: 1. Transportation firm now ...

Net profit margin: 1. Transportation firm now spends 60 percent of the sales revenue it receives in the supply chain, and has a net profit margin of 6 percent. The compan

Describe what is lean six sigma, What is Lean Six Sigma, please explain and...

What is Lean Six Sigma, please explain and give examples, thanks

Primary and secondary activities in value chain analysis, What are the prim...

What are the primary or secondary activities in value chain analysis? Primary or secondary activities incur costs, but within combination along with other activities give custo

Explain organizations periodically turn to, Organizations periodically turn...

Organizations periodically turn to _________ to meet demands for talent brought about by business growth and a desire for fresh ideas, or to replace employees who leave.

Explain one test of whether marketing research, One test of whether marketi...

One test of whether marketing research should be done is whether different outcomes will lead to different marketing actions. whether different outcomes will lead to the

Solve lp problem using the graphical technique, Consider the following LP p...

Consider the following LP problem: Maximize Z = 30X1 + 10X2 Subject to: 3x1 + x2 300 x1 + x2 200 x1 100 x2 50 and x1,x2 0 Solve using the graphical technique

Explain what are the advantages and disadvantages, Discuss the advisability...

Discuss the advisability of using modular assemblies in manufacturing. (What are the advantages and disadvantages?) To what extent can these arguments be applied to service product

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