Your company has compiled the following data on the small set of products that comprise the specialty repair parts division. Perform ABC analysis on the data. Over which product do you suggest the firm keep the tightest control?
$$ \begin{array}{|c|c|c|} \hline \text { SKU } & \text { Annual Demand } & \text { Unit cost } \\ \hline \text { R11 } & 125 & \$ 25 \\ \hline \text { S22 } & 55 & \$ 90 \\ \hline \text { T33 } & 100 & \$ 500 \\ \hline \text { U44 } & 150 & \$ 550 \\ \hline \text { V55 } & 2000 & \$ 4 \\ \hline \end{array} $$
In: Operations Management
For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inventory (carrying and setup) cost is $600. What is the inventory carrying cost per unit per year for this item?
In: Operations Management
The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, the setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. The production order quantity for this problem is approximate.
In: Operations Management
a production order quantity problem has a daily demand rate = 10 and a daily production rate = 50. The production order quantity for this problem is approximately 612 units. What is the average inventory for this problem?
In: Operations Management
Section A: This section carries 10 points
A certain type of computer costs $1,000, and the annual holding cost is 25% of the value of the item. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity? What is the total inventory cost?
Section B: This section carries 10 points
What is the difference between continuous review system and periodic review system?
In: Operations Management
The two most basic inventory questions answered by the typical inventory model are:
In: Operations Management
Which of the following is NOT one of the four main types of inventory?
In: Operations Management
The objective of inventory management is to
In: Operations Management
Which NIMS guiding principle supports interoperability among multiple organizations?
In: Operations Management
The forecasting time horizon that would typically be easiest to predict for would be the
In: Operations Management
Which is a sign of pests in an operation?
In: Operations Management