Nozone, Inc., a manufacturer of Freon recovery units (for automotive air conditioner maintenance), experiencesa strongly seasonal demand pattern, driven by the summer air conditioning season. This year Nozone has puttogether a six-month production plan, where the monthly demands D, for recovery units are given in the tablebelow. Each recovery unit is manufactured from one chassis assembly plus a variety of other parts. The chassisassemblies are produced in the machining center. Since there is a single chassis assembly per recovery unit, thedemands in the table below also represent demands for chassis assemblies. The unit cost, fixed setup cost andmonthly holding cost for chassis assemblies are also given in this table. The fixed setup cost is the firm'sestimate of the cost to changeover the machining center to produce chassis assemblies, including labor andmaterials cost and the cost of disruption of other product lines.tD₁C₁A₁h₂11,000502,000121,200502,00013500502,00014200502,00015800502,00011,000502,0001Use the Wagner Whitin algorithm to compute an optimal six-month production schedule for chassis assemblies.What is the total cost of the schedule?

The Wagner-Whitin algorithm works by dividing the planning horizon into sub-periods and calculating…

Answered: together a six-month production plan,…

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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Based on available information, lead time demand for PC jump drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 98% service level. Refer to the standard normal table for z-values. Part 2 a) What value of Z should be applied? ▼ 1.28? 2.06? 1.04? or 1.65? Part 3 b) How many drives should be carried as safety stock? ___________ units (round your response to the nearest whole number). Part 4 c) What is the appropriate reorder point? _________ units (round your response to the nearest whole number).
Unaiki manages the inventory for Hine's kids collection. She's had too many stockouts lately and is worried about poor customer service. Therefore, she is considering a change to the current inventory control system for kids track pants. She gathers the following information: average demand: 250 pairs/week lead time: 2 weeks order cost = $75 per/order unit cost: $21.50 carrying charge rate = 18% desired service level = 95% standard deviation of weekly demand: 40 number of weeks per year: 52 Unaiki decides to use a fixed order quantity system. a. What is the Economic Order Quantity? b. What are the total annual order and inventory-holding costs for the EOQ? c. What should the reorder point be to have a 95% service level? d. Help Unaoiki understand her new order logic: In order to stay in stock 95% of the time. she should place an order for ________ pairs when ____________.
Dicount-Mart, a major East Coast retailer,wants to determine the economic order quantity for its halogen lamps. it currently buys all halogen lamps from Speciality light manufacturers, in Atlanta. Annual demand is 2,200 lamps,ordering cost per order is $0.75, carrying cost per lamp is $20. As part of it's new JIT program, Discount-Mart has signed a long term contract with speciality lighting and will place orders electronically for its halogen lamps.What is the total annual cost of managing the inventory with this policy.
Production Company Universal Controlsmanufactures control units. Their new models areeI Argon I and eI Argon II. To make each unit ofArgon I, use 6 meters and 3 controllers. For fa-craft each unit of Argon II, they use 10 meters and Scontrollers. The company receives a total of 760 me-managers and daily controllers of their suppliers.How many units of each model can you produce?seriously? Assume that all parts are used. Note: Solve freely # OF ARGON UNITS I # OF ARGON UNITS II
Product A Order Qty = 400 Order Lead Time = 2 Forecast Demand Scheduled Receipts Projected Available Inventory 400 Planned Order Receipts Planned Order Releases 1 300 OD 4, 6, 2 300 400 Sketch and fill in the grid on scrap paper to use on upcoming questions In what periods would you incur a planned order release? OA 1.3, and 4 2.4, and 5 OC 3,5, and 6 and 7 3 300 PERIODS 4 300 5 300 6 300 7 100 8 100
Needed to be solved correclty in 30 minutes and get the thumbs up please show neat and clean work please provide correct solution
Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of 300 days. Setup labor cost Annual holding cost Daily production (8 hours) Annual demand for steering wheels Desired lot size (2 hours of production) $60.00 per hour $19 per unit 1,040 units/day 33,000 (300 days x daily demand of 110 units) Q = 260 units a) Setup cost = $ b) Setup time = (round your response to two decimal places). minutes (round your response to two decimal places).
Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order.
What Companies Use JIT Inventory Management?
Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: January 1 Quantity (pounds) January 31 Quantity (pounds) Work-in-Process Inventory Cost Cost Molding department Finishing department None None 5,000 $ 15,000 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Direct Costs of Production Materials Conversion Molding department Finishing department $ 450,000 $ 90,000 80,290 The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required: 1. Prepare…
Develop a measure of risk to go along with the ordering policy. This measure should be quantifiable.
Which of the following is one of the assumptions of EOQ model? Group of answer choices Annual demand is known and even throughout the year Orders are received partially There are quantity discounts Multiple items are involved Lead time varies

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