Given the following product tree (the quantities are shown between brackets in the next page):AB(3)D(1)The following data for A, B, C and D is known:StockSafety StockLot SizeLead Time102013050D400The master production schedule calls for production of 15 A in period 1,5 in period 2, 15 in period 3, 10in period 4, and 15 in period 5.There is a scheduled receipt of 20 A in period 1, 50 B in period 2 and 90 C in period 2.1. Calculate the MRP-explosion.2. Compare between MRP and ERP.2.

Given information Stock Safety Stock Lot size Lead Time A 10 0 20 1 B 30 0 50 2 C 0…

Answered: Given the following product tree (the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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6
37 Buffer stock is the level of stock: Select one: a. Level at which ordering process should start b. Half of maximum stock c. Maximum stock in inventory d. Minimum stock level below which actual stock should not fall
Mr. Hoi is the manager of a shop that assembles power tools. You have just received an order for 50 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws is (given in the picture) Suppose now that capacity to produce part E is limited to a maximum of 100 units per period. Revise the planned-order releases for periods 1 through 4 so that the maximum is not exceeded in any period, keeping in mind an objective of minimizing carrying costs. The quantities need not be equal in every period. Note that the gross requirements for E will remain the same. However, quantities in some of the other rows will change. Determine the new cell values for those rows.
6. Ah Seng Coffeeshop needs to decide in November 2021 how many Chinese New Year cups to order to sell at his coffeeshop. Because the cups are specially made for the year 2022 (year of the tiger), those that are unsold by end of February 2022 are considered a loss. These specially- designed cups sell for $23.95 and cost $6.75 each. Ah Seng is uncertain of the demand. He believes that there is a 25% chance that they will sell 10,000 cups, a 50% chance that they will sell 15,000 and a 25% chance that they will sell 20,000. a) Construct decision tree and cumulative risk profiles for the problem above using Precision Tree b) Now, assume that any unsold cups are discounted and can be sold for $5 after February 2022. How does this affect the decision?
Lead Time = 2 Weeks Safety Stock = 10 Units Order Quantity = Lot for Lot (produce or order exactly what is needed. Period 1 4 5 Gross Requirements 40 0 10 15 75 Scheduled Receipts 40 On Hand Inventory 25 25 25 15 10 10 Planned Order Relaeses 0 10 75 The following transactions occur during period 1: 5 units of the scheduled receipt of 40 in period 1 are scrapped. 40 units of part N are disbursed in period 1. (The gross requirements of 40 are met.) Referring to the above information, assume that the 5 units of scrap were recorded properly and that 8 more parts, not previously shown by the records, were found. When the MRP record is updated for the beginning of period 2, the projected on-hand balance for period 3 would be: a. Greater than 15 but less than or equal to 20 units. O b. Greater than 20 units. O c. Greater than 10 but less than or equal to 15 units. O d. Less than or equal to 10 units. 2.
Mr. Hoi is the manager of a shop that assembles power tools. You have just received an order for 50 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws is (given in the picture) Suppose now that capacity to produce part E is limited to a maximum of 100 units per period. Revise the planned-order releases for periods 1 through 4 so that the maximum is not exceeded in any period, keeping in mind an objective of minimizing carrying costs. The quantities need not be equal in every period. Note that the gross requirements for E will remain the same. However, quantities in some of the other rows will change. Determine the new cell values for those rows.
Determine whether the following statements are true or false. Statement T or F 1. Raw material is the material purchased but not processed 2. MRP stands for MATERIAL REQUIREMENT PLANNING. 3. EOQ stands for Environmental Outsourcing Quality 4. For calculating EOQ Model Quantity discounts are not possible 5. A safety stock means that the stock is fully free of danger for people. 6. MRP is usually a computer software.
Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. Also, evaluate the cost of the schedule. The monthly forecasts for Product X for January, February, and March are 1,000, 1,500, and 1,200, respectively. Safety stock policy recommends that half of the forecast for that month be defined as safety stock. There are 22 working days in January, 19 in February, and 21 in March. Beginning inventory is 500 units. Manufacturing cost is $200 per unit, storage cost is $3 per unit per month (based on expected end-of-month levels), standard pay rate is $6 per hour, overtime rate is $9 per hour, cost of stock-out is $10 per unit per month, marginal cost of subcontracting is $10 per unit, hiring and training cost is $200 per worker, layoff cost is $300 per worker, and worker productivity is 0.1 unit per hour. Assume that you start off with 50 workers and that they work 8 hours per day. Note: Leave the cells blank,…
Acme Inc. sells a widget with demand of 50 a day. Acme reviews its orders every 15 days and maintains a safety stock level of 200. The lead-time A is 3 days and today there are 227 units in stock. Please answer the next 2 questions: 14. The target inventory level for item A is: a. 1500 b. 1150 c. 1250 d. 1700 15. If an order for A is placed today, the order quantity should be: a. 923 b. 789 c. 1240 d. 800 16. At a Super America convenience store, customers enter the facility at the average rate of 15 customers per hour. There is a single attendant who takes an average of 4 minutes to process a customer. If we assume that every customer must be processed, the average number of customers in the store is: 1.0 1.5 c. 5 d. .833 a. b.
The annual demand, ordering cost, and the inventory carrying cost rate for a certain item are D = 960 units, S= $5/order, and I= 20% of item price. Current price is $19.2 per unit (without any discount). Price is established by the following quantity discount schedule. What should the order quantity be in order to minimize the total annual cost? Show your work Order Quantity 1 to 50 51 to 100 Price No discount 20% discount 40% discount o, 101 and up What should the order quantity be in order to minimize the total annual cost? Show your work. D-960 S-55 1-20% CURRENT PRICE-19.20
dt = demand Kt = ordering cost Ct = cost per item ht = holding cost per item per unit time
A manager receives a forecast for next year. Demand is projected to be 600 units for the first halfof the year and 900 units for the second half. The monthly holding cost is $2 per unit, and it costsan estimated $55 to process an order.a. Assuming that monthly demand will be level during each of the six-month periods covered bythe forecast (e.g., 100 per month for each of the first six months), determine an order size thatwill minimize the sum of ordering and carrying costs for each of the six-month periods.b. Why is it important to be able to assume that demand will be level during each six-month period?c. If the vendor is willing to offer a discount of $10 per order for ordering in multiples of 50units (e.g., 50, 100, 150), would you advise the manager to take advantage of the offer in eitherperiod? If so, what order size would you recommend?

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