The Noname Computer Company builds a computer designated model ICU2. It im- ports the motherboard of the computer from Taiwan, but the company inserts the sockets for the chips and boards in its plant in Lubbock, Texas. Each computer requires a total of ninety 64K dynamic random access memory (DRAM) chips. Noname sells the computers with three add-in boards and two disk drives. The com- pany purchases both the DRAM chips and the disk drives from an outside supplier. The product structure diagram for the ICU2 computer is given in Figure 8–6. Suppose that the forecasted demands for the computer for weeks 6 to 11 are 220, 165, 180, 120, 75, 300. The starting inventory of assembled computers in week 6 will be 75, and the production manager anticipates returns of 30 in week 8 and 10 in week 10. a. Determine the MPS for the computers. b. Determine the planned order release for the motherboards assuming a lot-for- lot scheduling rule. c. Determine the schedule of outside orders for the disk drives.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
a. Determine the planned order release for the motherboards in the problem given assuming that one uses the EOQ formula to
b. Using the results from part (a), determine the gross requirements schedule for the DRAM chips, which are ordered from an outside supplier. The order cost is $25.00, and the holding cost is $0.01 per chip per week. What order schedule with the vendor results if the EOQ formula is used to determine the lot size?
c. Repeat the calculation of part (b) for the add-in boards. Use the same value of the setup cost and a holding cost of 28 cents per board per week.
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