Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 14, Problem 26P
M. de Koster, of Rene Enterprises, has the master production plan shown below:
Lead time = 1 period; setup cost = $200; holding cost = $10 per week; stockout cost = $10 per week. Your job is to develop an ordering plan and costs for:
a) Lot-for-lot.
b) EOQ.
c) POQ.
d) Which plan has the lowest cost?
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Using the gross requirements schedule below*, prepare an alternative ordering system that orders every 3 weeks for 3 weeks ahead (a periodic order quantity). What is the cost of this
ordering system?
Period
1 2 3 4 5 6 7
Gross requirements 25 20 40 0 10 50 30
The cost of this ordering system is $
Prepare a net requirements plan (enter your responses as whole numbers).
*Holding cost = $1/unit/week; setup cost = $200; lead time = 1 week; beginning inventory = 25 units.
Period
Gross requirements
On-hand at beginning of period
On-hand at end of period
Net requirements
Order receipt
Order release
(enter your response as a whole number).
25
1
25
2
20
3
40
4
5
0 10
8
0
6
50
9 10
30 65
7
30
8 9 10
0
30 65
The annual demand of Bulldogs Inc. sole product totaled 450,000 units. Due to uncertainty in supply of items, the maximum possible lead time for the orders is 2 weeks and 1 day. A safety stock of 6,250 units is determined. What is the normal lead time? (Use 360 days)
A. 10 days
B. 9 days
C. 1 week and 5 days
D. 1 week
Chapter 14 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Ch. 14 - Ethical Dilemma For many months your prospective...Ch. 14 - What is the difference between a gross...Ch. 14 - Prob. 2DQCh. 14 - What are the similarities between MRP and DRP?Ch. 14 - How does MRP II differ from MRP?Ch. 14 - Which is the best lot-sizing policy for...Ch. 14 - What impact does ignoring carrying cost in the...Ch. 14 - MRP is more than an inventory system; what...Ch. 14 - What are the options for the production planner...Ch. 14 - Master schedules are expressed in three different...
Ch. 14 - What functions of the firm affect an MRP system?...Ch. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - Prob. 14DQCh. 14 - As an approach to inventory management, how does...Ch. 14 - Prob. 16DQCh. 14 - Use the Web or other sources to: a) Find stories...Ch. 14 - Prob. 18DQCh. 14 - Prob. 19DQCh. 14 - You have developed the following simple product...Ch. 14 - You are expected to have the gift bags in Problem...Ch. 14 - Prob. 3PCh. 14 - Your boss at Xiangling Hu Products, Inc., has just...Ch. 14 - The demand for subassembly S is 100 units in week...Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - You are product planner for product A (in Problem...Ch. 14 - Prob. 16PCh. 14 - Heather Adams, production manager for a Colorado...Ch. 14 - Prob. 22PCh. 14 - Data Table for Problems 14.22 through 14.25 ...Ch. 14 - Develop a POQ solution and calculate total...Ch. 14 - Using your answers for the lot sizes computed in...Ch. 14 - M. de Koster, of Rene Enterprises, has the master...Ch. 14 - Grace Greenberg, production planner for Science...Ch. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Courtney Kamauf schedules production of a popular...Ch. 14 - Using the data for the coffee table in Problem...Ch. 14 - Prob. 1.1VCCh. 14 - Prob. 1.2VCCh. 14 - Prob. 1.3VCCh. 14 - MRP at Wheeled Coach Wheeled Coach, the worlds...Ch. 14 - MRP at Wheeled Coach Wheeled Coach, the worlds...Ch. 14 - Prob. 2.3VC
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