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

Derive the demand functions of agent for good, 1. An agent has a utility fu...

1. An agent has a utility function over goods 1 and 2 of the form U = x c 1 x d 2 where c is your individual number and d is your minimum number. The agent's income is equal t

Explain store marketing, Please answer this question: You work in the suppl...

Please answer this question: You work in the supply chain department for a consumer goods company. You have recently expanded globally shipping goods to a nation where it is custom

Inventory management, How goods and service different affecut the following...

How goods and service different affecut the following operation management function of ogqnization

Explain customization and volume and process., The product-process matrix u...

The product-process matrix used to analyze manufacturing operations brings together the elements of: a) Customization, volume, and process. b) Volume, process, and intensity.

Explain hired assuming a 80 percent target utilization rate, The process fo...

The process for renewing a driver's license at the Archer County Courthouse is as follows. First, the clerk fills out the application; then the clerk takes the driver's picture, an

Business ethics and corporate social responsibility, Explain the relationsh...

Explain the relationship among 'Business Ethics' and 'Corporate Social Responsibility' Ethics may be viewed as a set of moral principles that guide behaviour, based on what is

What means the problem may be solved with pom, Michael Plumb's job shop has...

Michael Plumb's job shop has four work areas, A, B, C, and D. Distances in feet between centers of the work areas are: A B C D A - 4 9 7 B - - 6 8 C - - - 10 D - - - - means the pr

Compute the movement cost or load, Registration at Southern University has ...

Registration at Southern University has always been a time of emotions, commotions and lines. Students must move among 4 stations to complete the process. Last semester's registrat

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