Chapter 12 – Barbara Flynn
MyOMLab Operations Management
Heizer, Render and Munson
13th Edition
Safety Stock and Reorder Point.
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Safety Stock and Reorder Point.
Your numbers will vary.
EOQ, Annual Order, and holding cost
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Order how many pounds of oysters each day.
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Classify as ABC items.
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EOQ, avg inventory, number orders, days between orders, costs.
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What is economic order quantity? Which supplier should be used?
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Given the amount of sub-components produced per day and per year, working days, holding cost, and ordering cost…. figure out the economic production quantity, production runs per year, max inventory level, and the holding inventory.
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Given the bath towels used per day, the standard deviation, and the days of lead time necessary… find the reorder point and safety stock necessary.
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Determine how many to order each time, the number of orders per year, days between orders, average inventory, and order cost.
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Classify the inventory items at Boreki Enterprise into ABC classifications.
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