QUESTIONS – Homework #4. BUSN 6630, Management of Operations -…
QuestionQUESTIONS – Homework #4. BUSN 6630, Management of Operations -…QUESTIONS – Homework #4. BUSN 6630, Management of Operations – Spring 2020 Instructions. All questions are multiple choice. Submit answers through Canvas on or before the due date. No answers are accepted after the due date. If no answers are submitted by the due date, the grade will be zero. Take care and note that answers through Canvas may only be submitted once. Therefore, download the Word file with the homework questions. Obtain all the answers. Then submit answers. Find support for this material beginning at MDHarper.com MDHarper.comàOperations Managementà VIDEOSà Inventory à-Constant Demand à Videos 1 through 4 -Stochastic Demand à Videos 1 through 4 Part A. Manufacturer “A” has had a consistent constant demand of 40 items/week for one of their popular inventory items. Their inventory policy of ( 56 , 104 ) has worked well but a safety stock of zero was used and changes are being considered.. Question 1. What are their inventory period in months, lead time in weeks, order frequency in years, and turnover rate in quarters? Answer T LT F TR A. 0.6 1.4 5 40 B. 1.4 0.2 5 10 C. 0.6 1.4 20 10 D. 1.4 0.6 20 40 E. None of the above Question 2. Concern was expressed over the zero safety stock. Discussion included inquiries about changes in the inventory policy and inventory turnover rate due to an increase in the safety stock. If the safety stock was increased, then how many statements are correct?A. 0 B. 1 C. 2 D. 3 E. 4Statement 1. The reorder point would increase.Statement 2. The lot size would increase.Statement 3. The inventory turnover rate would increase.Statement 4. The inventory period would increase.. Part B. Hospital “B” has had a consistent constant demand of 3120 items/year for one of their popular inventory items. Changes to their inventory policy are being considered due to a change in the lead time of their supplier to 1.3 weeks and an increase of their safety stock to 18. Actions were also taken to incorporate a lot size in their inventory policy that would minimize the cost of ordering and carrying inventory. The information in their latest quarterly report was collected and reported below. This information is to be used in planning future inventory policies. Report on the requested item with a cost of $150 Quarterly report on warehouse operations Average Inventory $42000 Total inventory carrying cost $7560 Quarterly report on purchasing department operations Total order frequency 80 Total ordering cost $78960 . Question 3. Which inventory policy satisfies their requirements?A. ( 78 , 478 ) B. ( 96 , 239 ) C. ( 78 , 239 ) D. ( 96 , 478 ) E. none of the aboveQuestion 4. What would be the total annual inventory cost for the inventory policy that satisfies their requirements where the total annual inventory cost is the total annual carrying cost plus the total annual ordering cost?A. $12895.34B. $13867.34C. $25790.68D. $27734.68E. none of the above. Part C. Retail company “C” is considering an inventory item with normally distributed annual demand with a mean of 9360 and standard deviation of 80 for future planning purposes. For this inventory item, the lead time is 1.1 weeks and the inventory period is 4.4 weeks.. Question 5. What is the inventory policy for a stockout level of 6%?A. ( 216 , 792 ) B. ( 216 , 871 ) C. ( 218 , 871 ) D. ( 218 , 792 ) E. none of the aboveQuestion 6. If the variance of the normally distributed demand had a 10% increase, what would be the inventory policy for a stock level of 6%? A. ( 216 , 792 ) B. ( 216 , 871 ) C. ( 218 , 871 ) D. ( 218 , 792 ) E. none of the above. Part D. Event “D” company conducts 10 events per month to promote prototype products for companies in a specific market area. The demand for the products are randomly distributed and assumed to follow a normal distribution. Over the last five months, they have estimated a long cost of $42 per item and a short cost of $310 per item along with the observed demand for each event given in the table below. Month 1 Month 2 Month 3 Month 4 Month 5 74 88 78 88 65 83 75 81 72 67 64 65 90 72 82 76 68 47 87 79 55 81 88 64 84 93 91 64 52 64 68 68 80 68 72 76 82 72 68 63 98 72 77 90 75 52 68 63 73 78 Use population statistics for the data set. . Question 7. What is the optimal lot size for the next event that minimizes cost?A. 85 B. 92 C. 87 D. 89 E. none of the aboveQuestion 8. If only one cost was increased. Which would cause a decrease in the optimal lot size? A. short cost B. long cost C. none of the above. Part E. Wholesale “E” that has been assuming constant rate demand noticed stochastic weekly demand. Since this has caused problems, it was decided to investigate stochastic demand inventory policies. The lead time of 2 weeks and the inventory period of 5 weeks were known but a 13% stockout level was chosen to consider an inventory policy in their periodic review systems. They requested weekly demand and received the histogram of weekly demand. Upon viewing the frequency distribution, the weekly demand was assumed to normally distributed. . Question 9. What is their inventory policy?A. (5 weeks , 4470 )B. (5 week , 3137 )C. (7 weeks , 4470 )D. (7 weeks , 4265 )E. none of the aboveQuestion 10. Since the stockout level was chosen, different stockout levels can be considered. As the stockout level increases, what happens to the base stock level?A. increases B. decreases C. none of the above. >>>END OF HOMEWORK<< We are available 24x7 to deliver the best services and assignment ready within 3-4 hours? Order a custom-written, plagiarism-free paperNeeds help with similar assignment?
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