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Matching Supply With Demand An Introduction To Operations Management,4th Edition By Cachon, Terwiesch TEST BANK

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Matching Supply with Demand: An Introduction to Operations Management, 4e (Cachon) Chapter 2 The Process View of the Organization 1) Butternut is a ski resort in Massachusetts. One of their triple c ... hair lifts unloads 1296 skiers per hour at the top of the slope. (A triple chair lift can carry three passengers per chair.) The ride from the bottom to the top takes 5 minutes. How many skiers are riding on the lift at any one time? (Round the answer to the nearest whole number.) Answer: 108 skiers Explanation: Use Little's Law. 1296 skiers/hour * 5/60 = 108 skiers Difficulty: 3 Hard Topic: Littles Law AACSB: Analytical Thinking Blooms: Apply 2) Home Depot's annual turns are 4.7, its Cost of Goods Sold (COGS) is $44.7 billion, and its gross margin is 33%. Recall, gross margin = (Revenue – COGS) / Revenue. What is the average inventory it holds? (Round the answer to 2 decimal places.) Answer: $9.51 billion Explanation: $44.7 billion / 4.7 =$9.51 billion. Note that average inventory in dollars is measured by the cost of goods sold, thus the gross margin does not play a role in the calculation. Difficulty: 3 Hard Topic: Littles Law AACSB: Analytical Thinking Blooms: Apply 3) A company's holding cost is 16% per year. Its annual inventory turns are 9.5. The company buys an item for $50. What is the average cost in dollars to hold this item in inventory? (Round the answer to 2 decimal places.) [Show More]

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