Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 3AME
As the fixed order quantity (FOQ) for item D increases from 500 to 750, what happens to the order releases for items B, C, and D?
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A company produces skateboards. Each skateboard (A) consists of one unit of board (B), and two units of sub-assembly of roller-set (C). Roller-sets comprise of 2
components: 2 rollers (D) and one axle (E). The MPS is as follows:
Week
1
2
3
4
5
6
7
8
9
10
A
D
40
50
60
80
What are the planned order releases for item A? A has an on-hand inventory of 10, safety stock of 0. The lead time is 1 week and the ordering policy is Lot-for-Lot
(L4L).
The Alpha Beta Company produces two products; A and B,
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and inventory information, determine when orders shouldbe released for A, B, C, and D and the size of those orders.
Assume you are the manager of a shop that assembles power tools. You have just received an order for 55
chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws follows:
Item Lead Time (weeks) On Hand
Saw
A
B
C
D
E
F
2
1
2
2
1
1
2
Gross requirements
Scheduled receipts
Projected on hand
Net requirements
Planned order receipt
Planned order release
Ĉ
E(3) & E(2) LT = 1 week
Lot size: Lot-for-Lot
15
10
5
65
20
10
30
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Show Transcribed Text
Develop the material requirements plan for component E using lot-for-lot ordering for all items. (Leave no
cells blank - be certain to enter "0" wherever required.)
Components
A(2), B(1), C(4)
E(3), D(1)
D (2), F(3)
E(2), D (2)
Beg. Inv.
1
2
3
190
5
210
6
Chapter 11 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
Ch. 11 - Consider the master flight schedule of a major...Ch. 11 - For an organization of your choice, such as where...Ch. 11 - Consider a service provider that is in the...Ch. 11 - Complete the MPS record in Figure 11.29 for a...Ch. 11 - Complete the MPS record in Figure 11.30 for a...Ch. 11 - Prob. 3PCh. 11 - Figure 11.31 shows a partially completed MPS...Ch. 11 - Tabard Industries forecasted the following demand...Ch. 11 - Figure 11.32 shows a partially completed MPS...Ch. 11 - The forecasted requirements for an electric hand...
Ch. 11 - A forecast of 240 units in January, 320 units in...Ch. 11 - An end items demand forecasts for the next 6 weeks...Ch. 11 - An end items demand forecasts for the next 10...Ch. 11 - Consider the bill of materials (BOM) in Figure...Ch. 11 - Product A is made from components B, C, and D....Ch. 11 - What is the lead time (in weeks) to respond to a...Ch. 11 - Product A is made from components B and C. Item B,...Ch. 11 - Refer to Figure 11.23 and Solved Problem 1. If...Ch. 11 - The partially completed inventory record for the...Ch. 11 - The partially completed inventory record for the...Ch. 11 - The partially completed inventory record for the...Ch. 11 - Figure 11.38 shows a partially completed inventory...Ch. 11 - A partially completed inventory record for the...Ch. 11 - The BOM for product A is shown in Figure 11.40,...Ch. 11 - The BOMs for products A & B and data from the...Ch. 11 - Figure 11.42 illustrates the BOM for product A....Ch. 11 - The following information is available for three...Ch. 11 - Figure 11.44 shows the BOMs for two products, A...Ch. 11 - The BOM for product A is shown in Figure 11.45....Ch. 11 - Refer to Solved Problem 1 (Figure 11.23) for the...Ch. 11 - The bill of materials and the data from the...Ch. 11 - The bill of materials and the data from the...Ch. 11 - The McDuff Credit Union advertises their ability...Ch. 11 - Suppose that the POQ for item B is changed from 3...Ch. 11 - As the on-hand inventory for item C increases from...Ch. 11 - As the fixed order quantity (FOQ) for item D...Ch. 11 - As the lead time for item C changes, what happens...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- The planned order receipt for item A is 200 in week 5 and the lead time is 3 weeks. Which week should the planned order release be?arrow_forwardProduction Quantity Model A manufacturing company operates 300 days a year with an annual demand for component C of 43,200 units. The fabrication department at the company is able to produce 800 units per day and send them over to assembly while production is in progress. If assembly sends a work order for 11,200 units of component C to fabrication, how long is the order receipt period? Given the order quantity in the previous question, what is the average inventory level for component C?arrow_forwardSuppose we are formulating a Master Production Schedule (MPS) for an item. Week O projected on- hand is 83 units. The lot-size policy for this item calls for L4L ordering. Lead time for this item is one week. There are no safety stock requirements. Here are the demand forecast and the booked orders for this item . Week 2 3 4 5 6 Forecast 60 45 45 45 45 60 Booked 59 48 30 10 What will be the order size of the first MPS Start Quantity that is needed?arrow_forward
- The fixed quantity version of EOQ compares and contrasts with the fixed interval version. Where will each of the scenarios be used?arrow_forwardExercise 2: The demand per year (D) for product X is 12,100 units. The costs of placing an order (S) are $4.50. The unit cost (C) of the item is $25.00. The maintenance cost (H) per unit per year is 30% of the item's cost. 1. Use the economic order quantity (EOQ) model to determine: *Optimal quantity to order* The expected number of orders*Optimal time between orders*The total annual cost of maintaining that optimal amountNOTE: Show calculations of how you arrived at each amount 2. Answer, what are the potential benefits of using EOQ analysis for inventory management? How can you help businesses strike a balance between inventory holding costs and ordering costs?arrow_forwardCan you assist me with Problem 5arrow_forward
- Figure shows a partially completed MPS record for 2 inch pneumatic control valves. Suppose that you receive the following orders at right for the valves (shown in the order of their arrival). As they arrive, you must decide whether to accept or reject them. Which orders would you accept for shipment?Order Amount (Units) Week Requested1 15 22 30 53 25 34 75 7arrow_forwardAssume material A calls out material B. Material A has a stock quantity of 20. Material A has a demand for 100 due on 7/2 and there is an order for 80 with a due date of 7/2 and start date of 6/25. What is the requirement date that will be generated for (Enter your answer as a date in the format M/DD; eg product B? 8/1 or 7/12)arrow_forwardAssume material A calls out material B (qty per = 1). Material A has a stock quantity of 10. Material A has a demand for 100 due on 7/1 and there is an order for 90 with a due date of 7/1 and start date of 6/15. What is the requirement QUANTITY that will be generated for product B?arrow_forward
- A single inventory item is ordered from an outside supplier. The anticipateddemand for this item over the next 12 months is 6, 12, 4, 8, 15, 25, 20, 5, 10, 20, 5,12. Current inventory of this item is 4, and ending inventory should be 8. Assume aholding cost of $1 per period and a setup cost of $40. Determine the order policyfor this item based onc. Part period balancingarrow_forwardDevelop a EOQ solution and calculate total relevant costs for the gross requirements in the following table*. Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20 30 30 30 20 10 40 60 *Holding cost =$ 2.50/unit/week; setup cost =$ 150; lead time =1 week; beginning inventory =40. What is the average demand per week? with 2 decimal places): Calculate Economic Order Quantity (EOQ) Develop a EOQ solution (enter your responses as whole numbers). Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20 30 30 30 20 10 40 60 Scheduled receipt…arrow_forwardOver in the Marvel universe, you find yourself in charge of ordering Nitinol (a nickel-titanium alloy which actually exists in the real world, as far as I can tell) for Iron Man clone suits. You have a number of kg of material on hand at the start of the time horizon, as shown in the table. You use a Periodic Ordering Quantity of 2 weeks when ordering. Fill out the rest of the table, computing the Planned Order Releases. Copy the table and paste it into the answer box to fill it out. Lead Time = 1 week. Nitinol 1 2 3 4 5 6 Gross Requirements 10 10 25 12 32 20 Scheduled Order Receipts Projected Available Balance 35 Net Requirements Planned Order Receipts Planned Order Releasesarrow_forward
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