3. Ergonomics (M) Bhd. sells ergonomically designed office chairs. The company has the followinginformation:Average demand = 20 units per dayAverage lead time = 30 daysItem unit cost = $50 for orders of less than 200 unitsItem unit cost = $48 for orders of 200 units or moreOrdering cost = $25Inventory carrying cost = 25% of item unit costThe business year is 250 daysHow many chairs should the firm order each time? Assume there is no uncertainty at all about thedemand or the lead time.

Economic order quantity is the optimal quantity that the business needs to buy the inventory to…

Answered: How many chairs should the firm order…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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

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requirements over a typical six-month periöd are as 1 4 5. 6 Requirement 750 800 750 600 900 700 Produce # of Employees Hire Layoff Beginning Inventory Ending Inventory Average Inventory The current workforce level is 4 workers. Production rate is 150/worker/month. The following costs apply:Wages = $2,000/worker/month Hiring cost - $200/worker Layoff Cost = $250/worker Inventory holding cost = $1/unit/month Back ordering cost - $2/unit/month If a Level strategy is used, what is the total inventory cost, which includes inventory holding cost and back ordering cost? First, you need to determine the quantity to produce every period. 00s O O 1100 O 450 O 900 3. 2.
Each Triam Deluxe gamer computer system consists of two speakers, a monitor, a system unit, a keyboard, and an installation kit. These pieces are packed together and shipped as a complete kit. In MRP terms, all of these items are level 1 items that make the level 0 kits. Complete the MRP records, using the following information: • Production plans for complete kits are as follows: Start assembling 4,500 kits in week 2 Start assembling 1,000 kits in weeks 3, 4, and 5 Start assembling 8,000 kits in week 6 • The gross requirements for the system unit have already been given to you. For the remaining items, you will need to figure out the gross requirements. • All scheduled receipts, lead times, and beginning inventory levels are shown. Click the icon to view the MRP records. Construct the material requirements plan for item System unit (enter your responses as whole numbers). System unit: Lead Time = 1 week; Minimum order quantity = 3,500 Week 1 2 3 Gross requirements 4,500 1,000…
7
Shown below is a partially completed MPS record for ball bearings. a. Develop the MPS for ball bearings. (Enter your responses as integers. A response of "0" is equivalent to being not applicable.) Item: Ball bearings Quantity on Hand: 400 Forecast Customer orders (booked) Projected on-hand inventory MPS quantity MPS start 1 550 300 350 500 2 250 350 0 0 3 450 250 50 500 4 450 200 100 500 Order Policy: 500 units Lead Time: 1 week Week 5 250 150 350 500 6 400 100 450 500 7 200 50 250 0 8 250 100 To o 9 450 50 50 10 450 150 100 500 500
3. The MPS planner at Murphy Motors uses MPS time-phased records for planning end-item pro- duction. The planner is currently working on a schedule for the P24, one of Murphy's top-selling motors. The planner uses a production lot size of 70 and a safety stock of 5 for the P24 motor. Week On hand 30 30 30 1 2 3 4 5 6 7 8 40 40 40 45 45 13 8 4 Item: P24 Forecast Orders Projected available balance 20 Available-to-promise MPS a. Complete the MPS time-phased record for product P24. b. Can Murphy accept the following orders? Update the MPS time-phased record for accepted orders. Amount 40 Order Desired Week 1 4 2 6 3 30 2 4 25 3 30 4882 7623
Calculate the critical ratios for the following orders and establish in what order theyshould be run. Today’s date is 75.
Managing/adjusting level capacity is an example of managing demand.A. TrueB. False

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How many chairs should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time.