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Chapter 12

Chapter 12 - Answers to Problems.pdf

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Wilfrid Laurier University

CHAPTER 12INVENTORY MANAGEMENTAnswers to Problems 1 PROBLEM NO 121 ItemMonthly UsageUnit Cost4021 50 1400 940230012 4066 40 700650015020 9280 10 1020 4050 80 1406850 200015 301040020 4400 7000252307195814Sort by Monthlyvalue of cumul MonthlyMonthly ItemMonthly UsageUnit Cost value valueClass4400 70002517500048A 4021 50 14007000019A 6850 200015300008B4066 40 700280008B 2307195814274127B 4050 80 140112003C9280 10 1020102003C 30104002080002C94023001236001C 65001502030001C 366412 A reasonable classification is given aboveIts properties are Class cumulvalueof SKUs A67 20 B23 30 C10 50255 Instructors Manual Chapter 122 aPROBLEM NO 122 ItemUnit CostMonthly Usage K3410200K3525600 K3636150 M101625M202080 Z4580700 F1420300F9530800 F992060 D4510550D481290 D5215110 D5740120N083040 P0516500Sort by Monthlyvalue of cumul MonthlyMonthlyItemUnit CostMonthly Usage value valueClass Z45807005600042A F95308002400018AK35256001500011A P051650080006BF142030060004B D451055055004B K363615054004BD574012048004B K341020020001C D521511016501CM20208016001C F99206012001C N08304012001CD48129010801C M1016254000C 133830 A reasonable classification is given aboveIts properties are Class cumulvalueof SKUs A81 20 B22 33 C7 47bHeshe could exert more control on A items and least on C items For example A items could be ordered daily Bs weekly and Cs monthly 256 Operations Management 4CE cIt might be important for some reason other than dollar value such as cost of a stockout sole sourcing becoming obsolete etc 3D4860 bagsyr S10 H5 2DS 2486010 a EOQ 1394 bags round to 139 H5 b Q21392695 bags D 4860 bags c 3496 orders35 ordersQ 139 bagsorder D d TCQ2 HSQ139 4860 510347534964697142 1392486015e Using S15EOQ 1708171 5 171139EOQ increases by231394D10day260 daysyear2600 packagesyearS10 H12DS2260010 a EOQ228 packages H1 Q D b TCHS2 Q 228 2600TC 1101141140422804 2282 228 c Yes 100 2600 d TC 110 1002 100 50260310Yes the firm will save 310228048196 per year257 Instructors Manual Chapter 12
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