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Full Download Foundations of Operations Management Canadian 4th Edition Ritzman Solutions Manual
Full Download Foundations of Operations Management Canadian 4th Edition Ritzman Solutions Manual
Foundations of Operations
Management Canadian 4th Edition
Ritzman Solutions Manual
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Chapter
2 Supply-Chain Management
PROBLEMS
1. EBI Solar
a. Inventory turnover = (Annual sales at cost)/(Average aggregate inventory value)
Thus, 4.50 = 2 500 000 / Average aggregate inventory value
Average aggregate inventory value = $555 556
Weekly sales = Cost of goods sold / 52 = $2 500 000 / 52 = $48 077
Weeks of supply = Average aggregate inventory value / weekly sales
= $555 556 / 48 077 = 11.56 weeks of supply
b. Average aggregate inventory value = raw material + work-in-process + finished goods
= $100 500 + $25 800 + $16 200 = $142 500
Inventory turnover = (Annual sales at cost)/(Average aggregate inventory value)
= $2 500 000 / $142 500 = 17.54
Weeks of supply = Average aggregate inventory value / weekly sales
= $142 500 / 48 077 = 2.96 weeks of supply
18
3. Sterling Inc.
a. Average
Part Number Inventory (units) Value ($/unit) Total Value ($)
RM-1 20 000 1.00 20 000
RM-2 5 000 5.00 25 000
RM-3 3 000 6.00 18 000
RM-4 1 000 8.00 8 000
WIP-1 6 000 10.00 60 000
WIP-2 8 000 12.00 96 000
FG-1 1 000 65.00 65 000
FG-2 500 88.00 44 000
44 500 336 000
5. A retailer
a.
Sales per week = Cost of goods sold / 52 weeks per year
= $3 500 000 / 52
= $67 308
19
CHAPTER TWO Supply-Chain Management
b.
Inventory turnover = (Annual sales at cost) /
(Average aggregate inventory value)
= $3 500 000 / $1 200 000
= 2.9 turns/year
b. If the projection is for less than 666 667 solenoids, the use of the subcontractor becomes
a possibility. However, in doing so, the manufacturer loses some control over the
production of that part. If that part is critical to the end product, relinquishing direct
oversight may not be a good idea. The ability of the subcontractor to deliver on time
and with high quality are also factors to consider. Also, once out of the manufacturing
of that part, it typically will take quite a while to start it back up again, raising issues of
labor skills and equipment. Ethical issues, such as the potential layoffs and the effect on
the community, should also be considered.
7. BlueFin Bank
We use the break-even equation for evaluating two processes:
F − Fb
Q= m
cb − cm
The key is to solve for the fixed costs of the “make” option,
Fm = Fb + (cb − cm )Q
Fm = $12 million + 0.02(20 million) = $12 400 000. Consequently, if the fixed annual costs
to do the transactions in-house exceed, $12 400 000, BlueFin would be better off using
DataEase.
20
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XXIII
Autumn again with all its loveliness;
Autumn again that brought an end to joy,
Despite the sight of earth in amber dress,
And airs that bear the blitheness of a boy!
Autumn, and leaves that toss
In bright brief triumphing, while they express
The brooding sense of loss.
XXIV
Autumn again down every winding way
That, in the days gone by, our footsteps pressed!—
Instead of woven amaranth would I lay
Above your dust—you gone by paths unguessed—
Love’s deathless asphodel;
Until some happier hour,—when, who shall say?—
Brother in song, farewell!
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