Matching Supply with Demand an Introduction to Operations
Management, 5th Edition by Cachon
Chapter 2 to 19
TEST BANK
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw Hill LLC.
, Table of contents
Chapter 2:The Process View of the Organization
Chapter 3:Understanding the Supply Process: Evaluating Process Capacity
Chapter 4:Estimating and Reducing Labor Costs
Chapter 5:Batching and Other Flow Interruptions: Setup Times and the Economic OrderQuantity
Model
Chapter 6:The Link between Operations and Finance
Chapter 7:Quality and Statistical Process Control
Chapter 8:Lean Operations and the Toyota Production System
Chapter 9:Variability and Its Impact on Process Performance: Waiting Time
Problems
Chapter 10:The Impact of Variability on Process Performance: Throughput Losses
Chapter 11:Scheduling to Prioritize Demand
Chapter 12:Project Management
Chapter 13:Forecasting
Chapter 14:Betting on Uncertain Demand: The Newsvendor Model
Chapter 15:Assemble-to-Order, Make-to-Order, and Quick Response with Reactive Capacity
Chapter 16: Service Levels and Lead Times in Supply Chains: The Order-up-toInventory
Model
Chapter 17:Risk-Pooling Strategies to Reduce and Hedge Uncertainty
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw Hill LLC.
,Chapter 18:Revenue Management with Capacity Controls
Chapter 19:Supply Chain Coordinatio
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw Hill LLC.
, Chapter 2-19
Chapter 2: The Process View of the Organization
Q2.1 Ḋell
The following steps refer ḋirectly to Exhibit 2.1.
#1: For 2001, we finḋ in Ḋell’s 10-k: Inventory = $400 (in million)
#2: For 2001, we finḋ in Ḋell’s 10-k: COGS = $26,442 (in million)
26, 442$/ year
#3: Inventory turns
66.105 turns per year 400$
40% per
#4: Per unit Inventory cost 0.605% per year
year
66.105 per
year
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw Hill LLC.
Management, 5th Edition by Cachon
Chapter 2 to 19
TEST BANK
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw Hill LLC.
, Table of contents
Chapter 2:The Process View of the Organization
Chapter 3:Understanding the Supply Process: Evaluating Process Capacity
Chapter 4:Estimating and Reducing Labor Costs
Chapter 5:Batching and Other Flow Interruptions: Setup Times and the Economic OrderQuantity
Model
Chapter 6:The Link between Operations and Finance
Chapter 7:Quality and Statistical Process Control
Chapter 8:Lean Operations and the Toyota Production System
Chapter 9:Variability and Its Impact on Process Performance: Waiting Time
Problems
Chapter 10:The Impact of Variability on Process Performance: Throughput Losses
Chapter 11:Scheduling to Prioritize Demand
Chapter 12:Project Management
Chapter 13:Forecasting
Chapter 14:Betting on Uncertain Demand: The Newsvendor Model
Chapter 15:Assemble-to-Order, Make-to-Order, and Quick Response with Reactive Capacity
Chapter 16: Service Levels and Lead Times in Supply Chains: The Order-up-toInventory
Model
Chapter 17:Risk-Pooling Strategies to Reduce and Hedge Uncertainty
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw Hill LLC.
,Chapter 18:Revenue Management with Capacity Controls
Chapter 19:Supply Chain Coordinatio
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw Hill LLC.
, Chapter 2-19
Chapter 2: The Process View of the Organization
Q2.1 Ḋell
The following steps refer ḋirectly to Exhibit 2.1.
#1: For 2001, we finḋ in Ḋell’s 10-k: Inventory = $400 (in million)
#2: For 2001, we finḋ in Ḋell’s 10-k: COGS = $26,442 (in million)
26, 442$/ year
#3: Inventory turns
66.105 turns per year 400$
40% per
#4: Per unit Inventory cost 0.605% per year
year
66.105 per
year
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw Hill LLC.
