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. FIGURE 8-6 ICU2 computer (end item) Product structure diagram for ICU2 computer (for Problem 4) Motherboard (1) Lead time = 3 weeks Disk drives (2) Lead time =' l week Add-in boards (3) Lead time = 1 week DRAM chips (90) Lead time = 2 weeks
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.
For 8.4, suppose that Noname has 23,000 DRAM chips in inventory. It anticipates receiving a lot of 3,000 chips in week 3 from another firm that has gone out of business.At the current time, Noname purchases the chips from two vendors, A and B. A sells the chips for less, but will not fill an order exceeding 10,000 chips per week.
a. If Noname has established a policy of inventorying as few chips as possible, what order should it be placing with vendors A and B over the next six weeks?
b. Noname has found that not all the DRAM chips purchased function properly. From past experience it estimates an 8 percent failure rate for the chips purchased from vendor A and a 4 percent failure rate for the chips purchased from vendor B. What modification in the order
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