Solution Manual For Matching Supply with Demand: An Introduction to Operations Management, 4th Edition

Solution Manual For Matching Supply with Demand: An Introduction to Operations Management, 4th Edition gives you the answers you need, explained in a simple and clear way.

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2-1Matching Supply with Demand: An Introduction to Operations Management4eSolutions to Chapter ProblemsChapter 2The Process View of the OrganizationQ2.1 DellThe following steps refer directly to Exhibit 2.1.#1: For 2001, we find in Dell’s 10-k: Inventory=$400 (in million)#2: For 2001, we find in Dell’s 10-k: COGS=$ 26,442 (in million)#3: Inventory turns=$400/$442,26year= 66.105 turns per year#4: Per unit Inventory cost =yearper66.105yearper40%= 0.605% per yearQ2.2.AirlineWe use Little’s law to compute the flow time, since we know both the flow rate as wellas the inventory level:Flow Time = Inventory / Flow Rate = 35 passengers / 255 passengers per hour = 0.137hours=8.24 minutesQ2.3Inventory Cost(a)Sales = $60,000,000 per year / $2000 per unit = 30,000 units sold per yearInventory = $20,000,000 / $1000 per unit = 20,000 units in inventoryFlow Time = Inventory / Flow Rate = 20,000 / 30,000 per year = 2/3 year = 8 monthsTurns = 1 / Flow Time = 1 / (2/3 year) =1.5 turns per yearNote: we can also get this number directly by writing: Inventory turns=COGS/ Inventory(b)Cost of Inventory: 25% per year / 1.5 turns=16.66%. For a $1000 product, this wouldmake an absolute inventory cost of $166.66.Q2.4.Apparel Retailing(a)Revenue of $100M implies COGS of $50M (because of the 100% markup). Turns =COGS/Inventory = $50M/$5M = 10.

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