A distributor manages a critical component with an average d…
A distributor manages a critical component with an average demand rate of 100 units per week and a standard deviation of demand of 50 units per week. The supplier lead time is 3 weeks. To maintain their desired service level, the distributor utilizes a safety factor (z) of 2. If the cost to hold one unit of inventory is $10 per week, what is the average holding cost per unit sold? Enter your answer as a whole number (for example 20).
Read DetailsAn analyst at Facebook is using Exponential Smoothing to for…
An analyst at Facebook is using Exponential Smoothing to forecast Daily Active Users (DAUs). The last forecast (ŷₜ) was 400 million, and the actual demand (yₜ) turned out to be 500 million. If the analyst uses a conservative smoothing parameter of α = 0.2, what is the new forecast (ŷₜ₊₁)? Enter your answer as a whole number (for example, 20). Do not include zeros for “million.” For instance, if the answer is 20 million, enter 20.
Read DetailsTwo different companies have adopted strategies to manage va…
Two different companies have adopted strategies to manage variety without crippling inventory costs. Company X allows customers to customize the colors of their sneakers, only finishing the shoe once the exact order is placed. Company Y is an online retailer that sells thousands of rare, slow-moving books from a massive, single warehouse. According to the lecture notes, what fundamental concept links the success of both strategies?
Read DetailsA manufacturer produces custom-built industrial safes. The p…
A manufacturer produces custom-built industrial safes. The products are incredibly heavy, and the actual labor required to manufacture them is very low relative to the final price tag of the safe. Based on the strategic sourcing rules provided in the lecture, what decision should the manufacturer make regarding where to produce these items?
Read DetailsA stir-fry station at a restaurant can continue cooking for…
A stir-fry station at a restaurant can continue cooking for 30 minutes even if the vegetable prep station stops working because they maintain a container of pre-cut peppers and onions. According to the notes, this inventory is held specifically as a:
Read DetailsA Facebook infrastructure lead is deciding between using a M…
A Facebook infrastructure lead is deciding between using a Moving Average (MA) and Exponential Smoothing (ES) to forecast server traffic. According to the comparison in the notes, what is a primary procedural advantage of using Exponential Smoothing over a Moving Average?
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