PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
11th Edition
ISBN: 9780135226742
Author: HEIZER
Publisher: PEARSON
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Chapter 14, Problem 28P
a)
Summary Introduction
To determine: The total cost using EOQ.
b)
Summary Introduction
To determine: The total cost using Lot for lot.
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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
Keebock, a maker of outstanding running shoes, keeps the soles of its size 13 running shoes in inventory for one period at a cost of $.25 per unit. The setup costs are $50. Beginninginventory is zero, and lead time is I week. Shown here are the net requirements per period. Determine Keebock's cost based ona) EOQ. b) Lot-for-lot.
Flora is preparing for her busy season and is building 2500Model A fountains. Calculate the gross requirements for eachcomponent assuming that there is no beginning inventory
Chapter 14 Solutions
PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
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 - Prob. 17PCh. 14 - Heather Adams, production manager for a Colorado...Ch. 14 - Prob. 19PCh. 14 - Prob. 20PCh. 14 - Prob. 21PCh. 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. 28PCh. 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. 1CSCh. 14 - Prob. 2CSCh. 14 - Prob. 1.1VCCh. 14 - Prob. 1.2VCCh. 14 - Prob. 1.3VCCh. 14 - Prob. 2.1VCCh. 14 - Prob. 2.2VCCh. 14 - Prob. 2.3VC
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- Dennis Sport World, a chain of sporting goods stores, sells 360,000 tennis balls per year. The tennis balls cost Dennis Sport World RM15 per dozen. Annual inventory carrying costs are 20 percent of inventory price. The cost of placing and receiving an order are RM72. Assume the inventory replenishment occurs virtually instantaneously. Based on recent experience, Dennis Sport World uses 7 days delivery time for planning purposes. (Assume 360 days in a year) TASKS a) Calculate the Economic Order Quantity. b) Calculate the number of orders to be placed. c) Calculate the total annual inventory costs. d) Determine the reorder point.arrow_forwardFlora is preparing for her busy season and is building 2500 Model A fountains. Calculate the gross requirements for each component assuming that there is no beginning inventory. Component Immediate Parent Usage per Parent Lead Time (weeks) Beginning Inventory A none — 1 0 B A 2 2 250 C A 1 6 500 D A 3 3 750 E A 2 2 750 F B 4 2 3000 G B 2 4 1000 H D 3 2 5000 I D 2 4 5000 J E 1 8 1000 K E 5 1 5000 L E 2 4 2500 M F 3 3 250 N F 6 3 2560 O H 2 4 0 P K 1 2 500 Q K 2 3 1000arrow_forwardFull stepsarrow_forward
- Develop a solution with PPB Lot-Sizing technique and calculate the total relevant costs for the gross requirements in the following table Period 1 Gross requirements 30 2 3 30 Period Gross requirements On-hand at beginning of period 40 On-hand at end of period 4 Develop a PPB solution (enter your responses as whole numbers) 2 1 30 5 6 7 30 60 30 "Holding cost-$2 50/unit/week, setup cost = $200, lead time=1 week; beginning inventory = 40. 3 30 Order receipt Order release The total cost is $ (enter your response as a whole number) 8 4 9 10 11 12 20 80 50 5 6 7 30 60 30 8 9 20 80 10 11 12 50arrow_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 40 30 20 20 10 40 50 *Holding cost=$1.50/unit/week; setup cost=$150; lead time=1 week; beginning inventory=40. What is the average demand per week? (enter your responses with 2 decimal places): enter your response here Calculate Economic Order Quantity (EOQ) (enter your responses as whole numbers): enter your response here Calculate the number of periods for POQ (enter your responses as whole numbers): enter your response here Develop a POQ solution (enter your responses as whole numbers). Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20…arrow_forwardDarren Company uses 36,000 yards of canvas each month to make tents. It usually takes four (4) days from the time Darren orders the material to when it is received. If the desired safety stock is 5,000 yards, what is the re-order point?(Answer format: 25,000) no peso sign, no unit of measure!arrow_forward
- A Maintains a particular gym. 55% on a gross murgain of all it's training products. In April the gym had a beginning inventory of 142, 000 net Purchases of 202,000 and net sales of 433,000, to estimate Use grass profit method Cost (in #1) of ending inventory?arrow_forwardplease show how to do this in excel thank you! :)arrow_forwardItem 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. a. How much would be Item X's total annual storage cost? Php 8,485 Php 16,971 Php 2,000,000 None of the above b. How much would be Item X's total annual stockout cost? Zero Php 8,485 Php 16,971 None of the above c. Including its total annual purchasing cost, how much would be Item X's total annual inventory cost? Php 2,008,485 Php 2,000,000 Php 2,016,971 None of the above Please ANSWER ALL THE QUESTIONS above to avoid being rated as unhelpful. Thank you!arrow_forward
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