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 when qb researchers look in dept, When qb researchers look in dept....

When qb researchers look in dept. at single situation/when research method are they using/1. Laboratory studies/2. Field studies/3. Case study/4 meta-analysis/ 5.survey studies/ wh

Comparison of market based and resource-based approach, Comparison of Marke...

Comparison of Market Based and Resource-Based Approach to Operations Strategy Since Porter's assertions, there has been a recognition that traditional strategic management has

How a company is most efficient in its use of credit, Step 1: Pick an indus...

Step 1: Pick an industry that you find interesting. This may be driven by a company by which you would like to be employed or by some other factor. Within the industry, identify th

Explain the factors affecting motivation, Explain the factors affecting mot...

Explain the factors affecting motivation . Factors influencing motivation: Achievement-Personal satisfaction in problem solving and job completion. Advancement-Promot

Explain what is the hourly production rate, An assembly line currently has ...

An assembly line currently has five workstations and the time required for each is shown below. 1: 48 seconds, 2: 38 seconds, 3: 44 seconds, 4: 56 seconds, 5: 42 seconds what is th

Explain internal resources and capabilities, Analyze Procter & Gamble's (Ca...

Analyze Procter & Gamble's (Case 8) resources and capabilities as well as its structures and systems. Internal resources and capabilities. How should P&G's strengths be leverage

Sink and tuttle strategic matrix - performance measures, Sink and Tuttle st...

Sink and Tuttle strategic matrix  Sink and Tuttle (1989) conducted a review of literature and identified several criteria for measuring a company. Their framework builds on th

Location analysis, explain the series of steps involved and various factor...

explain the series of steps involved and various factor effecting location decion?

Explain problem when a new drug is introduced to the market, What capacity ...

What capacity problems are encountered when a new drug is introduced to the market?

Linear programing, Linear objective function & non linear objective functio...

Linear objective function & non linear objective function.

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