Chapter 12 Inventory Management Discussion Questions 1. The short answer is that higher inventories do not provide an advantage in any of the nine competitive priority categories. The important point is that firms must have the “right amount” of inventory to meet their competitive priorities. The only relevant costs considered in this chapter are ordering costs‚ holding costs‚ and stockout costs. In the economic order quantity (EOQ) model‚ costs of placing replenishment orders tradeoff
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INTRODUCTION Parts Emporium‚ Inc. is a wholesale distributor of automobile parts formed by two disenchanted auto mechanics‚ Dan Block and Ed Spriggs. Originally located in Block’s garage‚ the firm showed slow but steady growth for 7 years before it relocated to an old‚ abandoned meat-packing warehouse on Chicago’s South Side. With increased space for inventory storage‚ the company was able to begin offering an expanded line of auto parts. Fifteen years later‚ Parts Emporium was the largest
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CASE EXAMPLE Electrolux History This was just the latest shift in strategy at Electrolux whose impressive growth and development started under the leadership of Alex Wenner-Gren in 1920s Sweden. The early growth was built around an expertise in industrial design creating the leading products in refrigeration and vacuum cleaning. By the mid-1930s the company had also established production outside Sweden in Germany‚ UK‚ France‚ USA and Australia. The period following the Second World
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Pinnacle Case Study a. External users’ reliance on financial statements: 1. The company is privately held‚ but there is a large amount of debt‚ so the financial statement -may be used extensively. Also‚ management is considering selling the Machine-Tech division‚ which has the potential to result in extensive use of the statement by buyers. 2. Item 6 in the planning phase indicates plans for additional debt financing. Likelihood of financing difficulties: 1. The solar power engine business
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CASE STUDY: Quality Parts Company . BUS520 OPERATIONS MANAGEMENT 04 January 2008 Introduction: I. Which of the changes being considered by the manager of Quality Parts Company are counter to the lean philosophy? II. Make recommendations for lean improvements in such areas as scheduling‚ layout‚ kanban‚ task groupings‚ and inventory. III. Sketch the operation of a pull system for quality for Quality Parts Company’s current system. IV. Outline a plan for introducing lean at Quality Parts
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Cameron Auto Parts was founded in 1965 after the signing of the U.S. and Canada Auto Pact. The main consumers were the Big Three automotive manufacturers and the company prospered in this new business environment. In 2000‚ problems started to occur in the company. First‚ a consequent drop of the sales of more than 50% happened. Second‚ the Japanese were great competitors and took advantage of the market opportunities in Canada. Alex took the control in 2001 in order to implement a process of modernization
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Part 2 - Supply Issues Case Ryan Schwab MGT147 31512 Principles of Supply Chain Management Case 3) Don’t shoot the messenger 1. If you were in Jeff’s position‚ what would you have done to preserve relationships? If I were in Jeff’s position‚ I would first have thanked my suppliers and expressed gratitude to them for being willing to work closely with the company in not only designing the new product line‚ but in then reducing supply prices by the asked for 10 percent. I then would have tried to
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D’Leon Inc.‚ Part II TABLE IC4-1 Statement of Financial Positions 2009E 2008 2007 Assets Cash $85‚632 $7‚282 $57‚600 Accounts receivable 878‚000 632‚160 351‚200 Inventories 1‚716‚480 1‚287‚360 715‚200 Total current assets $2‚680‚112 $1‚926‚802 $1‚124‚000 Gross fixed assets 1‚197‚160 1‚202‚950 491‚000 Less accumulated depreciation 380‚120 263‚160 146‚200 Net fixed assets $817‚040 $939‚790 $344‚800 Total assets $3‚497‚152 $2‚866‚592 $1‚468‚800 Liabilities
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company’s strategic plan is basically a road map to how the company will achieve growth and financial prosperity. To achieve financial growth over the next four years PPQ Auto Parts must expand its operations globally. When a company decides to expand globally a lot of things must be considered. The upper-management of PPQ Auto parts decided that this would be the best thing that the company could do. As told by (Graves‚ 2012) when companies decide to take their operations internationally the must also
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SUMMARY PKL Auto parts supplies automotive parts to mechanics‚ dealers and lately to the mining industry. There are 4 offices and 1 warehouse from where all stock is sourced. Currently the inventory system located at the warehouse is accessed on expensive fixed 512Kbit lines. They are geographically spread out as per this map (Not to Scale). These are in Hillary’s‚ Osborne Park (being the main warehouse)‚ Alexander Heights‚ Kewdale and Melville. PKL Auto parts have recently had some issues and you
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