Question

"Suppose you are managing the Speedy Hardware Store. Give examples of items that might be managed by a P system and other items for which a Q system might be used. How do these items differ?"

Answer 1

At the Speedy Hardware Store,

Examples of items for both systems are as follows

The P system can be used for

• Nuts
• Bolts
• Nails
• Screws
• Washers
• Tacks.

The Q system can be used for

• Lawn equipment,
• Power tools and appliances.

Difference between P system and Q system items

P System items : These items have a lower per unit costs; lower ordering costs, lower carry costs and higher salesturnover in the hardware store.

Q System items: These items have higher per unit costs, higher carrying costs, higher ordering costs and higher stockout costs.