{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 5 Day 2 Spring 2010 Revised

Chapter 5 Day 2 Spring 2010 Revised - Chapter 5 Day 2(Feb...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 5 Day 2 (Feb. 24 th ) Strategic Planning Regarding Operating Processes 5-1 5-2 Learning Objectives • Describe the process and strategies of determining selling price. • Explain the process of determining the inventory model and demonstrate the EOQ and JIT models. • Discuss and calculate compensation packages. 5-3 What are the Common Reasons for Holding Inventory? • Meet customer demand • Smooth production scheduling • Take advantage of quantity discounts • Hedge against anticipated cost increases 5-4 What are the Common Reasons for Not Holding Inventory? • Significant costs are incurred • Holding inventory allows the company the “hide” its internal process problems because demand can be met from inventory 5-5 Balancing Act Ordering Costs Holding Costs 5-6 What is the Difference between EOQ and JIT? • EOQ Short-term model Minimizes incremental ordering and holding costs • JIT Long-term philosophy Assumes product-sustaining and facility- sustaining costs are relevant 5-7...
View Full Document

{[ snackBarMessage ]}

Page1 / 18

Chapter 5 Day 2 Spring 2010 Revised - Chapter 5 Day 2(Feb...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online