Chapter 13 Inventory

Annisa Sajidah 1311 100 135 Manajemen Operasi 1. A rm is faced with the attractive situation in which it can obtain immediate delivery of an item it stocks for retail sale. The rm has therefore not bothered to order the itemin any systematic way. However, recently prots have been squeezed due to increasing competitive pressures, and the rm has retained a management consultant to study its inventory management. The consultant has determined that the various costs associated with making an order for the item stocked are approximately $70 per order. She has also determined that the costs of carrying the item in inventory amount to approximately $27 per unit per year (primarily direct storage costs and forgone prot on investment in inventory). Demand for the item is reasonably constant over time, and the forecast is for 16,500 units per year. When an order is placed for the item, the entire order is immediately delivered to the rm by the supplier. The rm operates 6 days a week plus a few Sundays, or approximately 320 days per year. Determine the following: (13.3) a. Optimal order quantity per order b. Total annual inventory costs c. Optimal number of orders to place per year d. Number of operating days between orders, based on the optimal ordering 2. County Hospital orders syringes from a hospital supply rm. The hospital expects to use 40,000 per year. The cost to order and have the syringes delivered is $800. The annual carrying cost is $1.90 per syringe because of security and theft. The hospital supply rm offers the following quantity discount pricing schedule. Quantity 0-999 10,000-19,999 20,000-29,999 30,000-39,999 40,000-49,999 50,000+ Determine the order size for the hospital. (13.20) 3. The bookstore at Tech purchases jackets emblazoned with the school name and logo from a vendor. The vendor sells the jackets to the store for $38 apiece. The cost to the Price ($) 3.40 3.20 3.00 2.80 2.60 2.40

Chapter 13 Inventory
bookstore for placing an order is $120, and the annual carrying cost is 25% of the cost of a jacket. The bookstore manager estimates that 1700 jackets will be sold during the year. The vendor has offered the bookstore the following volume discount schedule: . Order Size 1-299 300-499 500-499 800+ Discount 0% 2% 4% 5%

What is the bookstores optimal order quantity, given this quantity discount information? (13.23) 4. The Aztec Company stocks a variety of parts and materials it uses in its manufacturing processes. Recently, as demand for its finished goods has increased, management has had difficulty managing parts inventory; they frequently run out of some crucial parts and seem to have an endless supply of others. In an effort to control inventory more effectively, they would like to classify their inventory of parts according to the ABC approach. Following is a list of selected parts and the annual usage and unit value for each: (13.39) Item Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Annual Usage 36 510 50 300 18 500 710 80 344 67 510 682 95 10 820 Unit Cost 350 30 23 45 1900 8 4 26 28 440 2 35 50 3 1 Item Number 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Annual Usage 60 120 270 45 19 910 12 30 24 870 244 750 45 46 165 Unit Cost 610 20 15 50 3200 3 4750 2710 1800 105 30 15 110 160 25