operations and supply chain management homework questions
WEEK 10 HOMEWORK – CHAPTERS 15 & 16
Please note: There are two chapters for this week. You need to only anwer 5 questions total. Therefor, you will need to pic some from the first chapter and some
from the second chapter. Remember: You only have to answer 5 total between the two chapters!
Chapter 15
1. Suppose you are managing the Speedy Hardware Store. Give examples of items that might be managed by a P system and other items for which a Q system might be used.
How do these items differ?
2. How should a manager decide the appropriate service level for finished goods items? Should some items have a 100 percent service level?
3. A manager was heard to complain, “I have some items that have a two-week review interval, and it takes four weeks for resupply. Every two weeks, I place orders
based on the on hand quantity in stock. Now I seem to have too much inventory.” What went wrong?
4. A student was overheard saying, “The EOQ model assumptions are so restrictive that the model would be hard to use in practice.” Is it necessary to have a different
model for each variation in assumptions? Why or why not?
5. What is the appropriate role of inventory turnover as a measure for evaluating the management of inventory? Under what circumstances is high turnover detrimental to
a firm?
Chapter 16
1. How much safety stock should be carried in an MRP system? What is the role of safety stock in MRP systems? Where should safety stock be carried?
2. Describe the advantages of cycle counting over an annual physical inventory.
3. Under what circumstances is a shop-floor control system needed?
4. Is it possible to control financial totals without physical control of materials in manufacturing?
5. A company president said his firm was too small to afford an MRP system. Discuss.
