Q2. A warehouse facilitates the reduction of the order cycle time of raw materials or consumer...

Q2. A warehouse facilitates the reduction of the order cycle time of raw materials or consumer goods required for a factory or retail outlet respectively.

Please explain how this is achieved. (30marks)

- Reduce travel time.

- Shift resources around the facility to the areas of the most activity.

- Throttle orders to areas that are underutilized and which have idle resources.

- Implement technology that will prevent stock outs and prioritize replenishments before they occur.

Expert Solution

Order cycle time formula is Q/D where Q is the order quantity and D is the demand for the year. However, this also provides us ideas on how to reduce the order cycle time. Now, in order to reduce the order cycle time, the key activity that we should reduce the ordering quantity. Now in order to reduce the order quantity we could use the following approaches.

Reduce the ordering cost/transportation cost: The warehouse can provide a discounted transportation cost to the retail outlets. This will reduce their ordering cost and thus reduce the value of EOQ.

Increase the holding cost: The warehouse cannot directly influence the holding cost but can reduce the “Best used by date” period. This will force the retail outlets.

A warehouse typically functions as a hub-spoke model for a supply chain system. As a result, holding inventory and its responsibility is often distributed across the network. This brings down the overall ordering cost and the lead times. This in return reduces order cycle time.

keosha answered 3 months ago

Freight transport facilitates place utility for raw materials and manufactured goods. Analyse the given statement and...

Freight transport facilitates place utility for raw materials and manufactured goods. Analyse the given statement and provide example with explanation. (20marks)

For a given AD curve, a reduction in the availability of labor or raw materials would...

For a given AD curve, a reduction in the availability of labor or raw materials would cause the short run aggregate supply to shift to the left which would cause prices to fall and output to increase in the short run. Select one: True False According to the AD/AS model, an economic contraction caused by a leftward shift of aggregate demand remedies itself over time as the expected price level falls, shifting the short run aggregate supply rightward. Select one:...

Shipments of raw materials are on time with probability 0.9. Find the probability that exactly one...

Shipments of raw materials are on time with probability 0.9. Find the probability that exactly one shipment out of the next five is LATE. r.v. X= X~ P(X? Find the probability that the fifth shipment is the first LATE one.

Over then past 5 years, the mean time for a warehouse to fill a buyer’s order...

Over then past 5 years, the mean time for a warehouse to fill a buyer’s order has been 25 minutes. Officials of the company believe that the length of time has increased recently, either due to a change in the workforce or due to a change in customer purchasing policies. The processing time (in minutes) was recorded for a random sample of 15 orders processed over the past month. 28 25 27 31 10 26 30 15 55 12 24...

7. One of the options for raw materials supply being available (quantity, timing) in order to...

7. One of the options for raw materials supply being available (quantity, timing) in order to absorb supplier delivery uncertainties is __________ safety stock transfer stock estimated stock none of the above 10. In projects there are usually 3 distinct project objectives, which are ________. cost, planning and performance planning, schedule and performance cost, schedule and performance none of the above 15. Basic strategy of time-series forecasting is to identify _____________ of each component on the basis of available past...

QUESTION 8 Which order of events for the Calvin cycle is correct? I. Reduction II. Regeneration...

QUESTION 8 Which order of events for the Calvin cycle is correct? I. Reduction II. Regeneration of the CO2 acceptor (RuBP) III. Carbon fixation   I, II, III  III, II, I  III, I, II  II, I, III I, III, II QUESTION 11 The process of harnessing light energy to build carbohydrates in autotrophs is glycolysis.   photosynthesis.   cell fermentation.   cell respiration. anaerobic metabolism. QUESTION 12 Where does glycolysis takes place?   mitochondrial membrane   cytosol   mitochondrial inner membrane   mitochondrial matrix   mitochondrial intermembrane space QUESTION...

Describe Natural Gas' supply chain from raw materials to consumer, and how it's financially traded.

Cook’s Furniture Purchase and Cash Disbursement Cycle Cook’s Furniture sources raw materials domestically as much as...

Cook’s Furniture Purchase and Cash Disbursement Cycle Cook’s Furniture sources raw materials domestically as much as possible, but it also has multiple suppliers in different locations globally. Customised products range is made to order and the lead time for manufacturing process is 10-12 weeks when an order is placed. Other products (e.g. office chairs, ottomans) are made based on anticipated level of sales. As part of interim audit, Jane Owen the audit senior on this engagement has completed a 'walk-through'...

The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials...

The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials purchased on account, $209,000. Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials). Accrued direct labor cost of $50,000 and indirect labor cost of $21,000. Depreciation recorded on factory equipment, $104,000. Other manufacturing overhead costs accrued during October, $129,000. The company applies manufacturing overhead cost to production using a predetermined rate of $9 per machine-hour. A total of 76,200 machine-hours...

The Searider Company uses a job-order costing system. The following transactions occurred in April: Raw materials...

The Searider Company uses a job-order costing system. The following transactions occurred in April: Raw materials were purchased on account, $180,000. Raw materials used in production, $148,000 ($130,000 direct materials and $18,000 indirect materials). Accrued direct labor cost of $75,000 and indirect labor cost of $105,000. Depreciation recorded on factory equipment, $40,000. Other manufacturing overhead costs accrued during April, $118,000. The company applies manufacturing overhead cost to production using a predetermined overhead rate of $6 per machine-hours. A total of...

Question