October 2012
Intermediate to advanced
696 pages
34h 17m
English
Content preview from Operations Management: An Integrated Approach, 5th EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Solved Problems
(See student companion site for Excel template.)
• Problem 1
Tacky Souvenirs sells lovely handmade tablecloths at its island store. These tablecloths cost Tacky $15 each. Customers want to buy the tablecloths at a rate of 240 per week. The company operates 52 weeks per year. Tacky, the owner, estimates his ordering cost at $50. Annual holding costs are 20 percent of the unit cost. Lead time is 2 weeks. Using the information given,
- (a) Calculate the economic order quantity.
- (b) Calculate the total annual costs using the EOQ.
- (c) Determine the reorder point.
• Before You Begin:
To calculate the economic order quantity, you use the formula
Remember that the demand information and the holding cost must be for the same time frame. That is, if you use annual demand, you must use an annual holding cost. Once you have calculated the EOQ, you calculate total annual costs with the formula
To find the reorder point, use the formula: R = dL. Remember that demand must be in the same time frame as is given for lead time. For example, if lead time is given as three weeks, then use weekly demand. If lead time is given in days, use daily demand.
• Solution
- (a) First, calculate the annual demand and the annual holding cost.
Annual demand = (52 weeks × 240 units per week) = 12,480 ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.