2. Suppose demand for a power steering gear assembly is given by Week 1 2 3 4 6. 7 8. 9 10 Demand | 45 65 35 40 33 32 25 Currently there are 150 parts on hand. Production is planned by using the fixed order period method with p=2. The lead time is three periods. (a) Determine the planned order release schedule. (b) Assume that a schedule receipt for 50 parts is scheduled to arrive in week five. What changes, if any, need to be made to the scheduled receipt? (c) Applying changed scheduled receipt, using the same lot-sizing and lead time, compute the planned order release schedule.

2. Suppose demand for a power steering gear assembly is given by Week 1 2 3 4 6. 7 8. 9 10 Demand | 45 65 35 40 33 32 25 Currently there are 150 parts on hand. Production is planned by using the fixed order period method with p=2. The lead time is three periods. (a) Determine the planned order release schedule. (b) Assume that a schedule receipt for 50 parts is scheduled to arrive in week five. What changes, if any, need to be made to the scheduled receipt? (c) Applying changed scheduled receipt, using the same lot-sizing and lead time, compute the planned order release schedule.

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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8. Assumptions of the EOQ model include: A. Demand is normally distributed. C. There is instantaneous order receipt. B. Lead time is normally distributed. D. Backorders can occur.
1. Gursoy Manufacturing Company originally estimated its annual demand for item XYZ as 8000 units per year at a unit cost of $10. The order cost is $30 and the holding cost per unit is $3 annually. Gursoy has discovered at the end of the year that annual demand is only 6000 units and holding cost per unit per year are closer to $4. The only good news is that Gursoy figured orders cost $25 to place instead of $30 each. Gursoy now wants to know the significance of these mistakes on last year's decisions. a) What was the combined effect of these errors on the economic order quantity for item XYZ? b) What was the individual effect of each error on item XYZ economic order quantity? c) What was the combined effect of these errors on the minimum total variable cost (fixed order cost and holding cost) of item XYZ for last year? d) What was the individual effects of each error in demand on the minimum total variable cost for last year?
Reorder PointConsider an economic order quantity case where annual demand D = 1,000 units, economic order quantity Q = 200 units, the desired probability of not stocking out P = .95, the standard deviation of demand during lead time σL = 25 units, and lead time L = 15 days. Determine the reorder point. Assume that demand is over a 250-workday year.
Q5- B- Fill in the blanks with appropriate words: a) Crash time is an amount of time b) The main task of Project Crashing is - c) The function of the economic order quantity EOQ model is to d) The number of ordering during the year is known as e) There are several variations of the EOQ model, depending on the -
Lead Time = 2 Weeks Safety Stock = 10 Units Order Quantity = Lot for Lot (produce or order exactly what is needed. Period 1 4 5 Gross Requirements 40 0 10 15 75 Scheduled Receipts 40 On Hand Inventory 25 25 25 15 10 10 Planned Order Relaeses 0 10 75 The following transactions occur during period 1: 5 units of the scheduled receipt of 40 in period 1 are scrapped. 40 units of part N are disbursed in period 1. (The gross requirements of 40 are met.) Referring to the above information, assume that the 5 units of scrap were recorded properly and that 8 more parts, not previously shown by the records, were found. When the MRP record is updated for the beginning of period 2, the projected on-hand balance for period 3 would be: a. Greater than 15 but less than or equal to 20 units. O b. Greater than 20 units. O c. Greater than 10 but less than or equal to 15 units. O d. Less than or equal to 10 units. 2.
The two most important inven tory-based questionsanswered by the typical inventory model are:a) when to place an order and the cost of the order.b) when to place an order and how much of an item to order.c) how much of an item to order and the cost of the order.d) how much of an item to order and with whom the order should be placed.
39 Item X Is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more of item X, it costs $20. a. Whenever item X is ordered, what should the order size be? Note: Round your answer to the nearest whole number. b. What is the annual cost for ordering item X? Note: Round your order quantity to the nearest whole number and your final answer to 2 decimal places.
A product's demand in cach period follows a Normal distribution with mean of 50 and standard deviation of 6. The order up to level S is 225. Lead time is 3 periods. What is the Expected On hand Inventory? Show all formulas used. calculations and results. What is the stock out probability ? Show all formulas used, calculations and results.
[item no. 9] In marginal analysis with discrete distributions for single-period inventory models, the value of ML/(ML+MP) is 0.8. The probability distribution of sales is given by the following by the table below. Find the optimal number of units to order. Daily demand 80 90 100 110 120 Probability that demand will be at this level 0.10 0.20 0.30 0.30 0.10 a. 90 units b. 110 units c. 100 units d. 80 units
A manufacturing company produces two products X and Y. Each product X requires one A and two Bs. Each B requires one C and one D. Each product Y requires 1 C and 4Ds. Table Q5A shows data from the inventory records of components. Table Q5A Data category A B C D Lot - sizing rule Fixed order quantity = 250 Lot for lot Lot for lot Fixed order quantity = 1000 Lead time 3 weeks 2 weeks 1 week 2 weeks Beginning inventory 70 0 200 800 The MPS for products X and Y is given in Table Q5B. The on-hand inventories are as follows: X = 100, Y = 30. The only scheduled receipts are 250 units of X in period 2.The lead times are as follows: X = 2 weeks, Y = 3 weeks. The chase strategy is used for both products. Table Q5B Demand in period Product SS 1 2 3 4 5 6 7 8 X 50 300 200 250 Y 30 400 Required: a) Draw a product structure tree for each product. b) Develop…
53. Average demand for a particular item is 1,200 units per year. It costs $100 to place an ordem for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixed order-interval model is chosen in this instance, how often (on average) will this item be ordered a) Once a month b) Once every other month c) Twice a month d) Twice every three months e) Three times every two months 54. The EOQ model is most relevant for which one of the following? a) Ordering items with dependent demand b) Determination of safety stock c) Ordering perishable items d) Determining fixed interval ordering quantity e) Determining fixed order quantity 55. What type of process would a paper mill be most likely to use? a) Continuous flow b) Project c) Job shop d) Flow shop 56. The transportation model method that is used to evaluate location alternatives minimizes t a) sources b) destinations c) capacity d) shipping costs
Economic order quantity (Q*) is 4,000 units. Annual demand (D) is 12,000 units. Find number of orders per year (N*) and time between orders (T*) in years. Group of answer choices N*=3 times per year, T* cannot be calculated N*=0.33 times per year, T*= 0.33 weeks N*=17.3 times per year, T*= 3 years N*=3 times per year, T*= 0.33 years N*=3 times per year, T*= 3 years