3325n Module2k Essay

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3325module2

1a The XYZ Inc. buys mother boards for its computer assembly. The following information is available:

Annual Demand, units/year
10000
Order Cost, $/per order
$20
Carrying Costs (annual), as of unit cost
0.20
Unit Costs, $/per unit
$50
Lead Time (days)
5
Safety Stock, units
20
Days of a Calendar Year
250

Determine:

a. EOQ= √2DO/IC
D=annual demand
O=order cost or set up cost /per
I=inventory carrying cost as % of unit cost
C=unit cost

b. Total Orders a Year:

c. Maximum Inventory:

d. Minimum Inventory:

e. Average Inventory:

f. Reorder Point:

g. Annual Inventory Carrying Costs:

h. Annual Inventory Carrying Costs & Order Costs:

1b The XYZ Inc. decides to make mother board for its computer
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h. Planned order release for component D in period 6 is known.
i. the gross requirement for component D in period 7 comes from gross requirement for component C in period 7.
3 Product A is made of 2 units of Part B and 3 units of Part C. Part B is made of 2 units of Part C and 4 units of Part D. Part D is made of 3 units of Part C. Draw a BOM chart and make your MRP in the following tables.

On Hand Inventory and Lead Time for each component are shown in the following table:
Item
Quantity (in units)
Lead Time (periods
Product A
20
2
Part B
30
2
Part C
200
1
Part D
30
3

The Master Production Schedule requirements for Product A Assembler are as follows:
Period
MPS for Product A:
1
2
3
4
5
6
7
8
9
10
Quantity (in units)
0
0
0
0
0
0
0
0
40
50

A: Gross Requirement

On Hand Inventory

Net Requirement

Planned Order Receipts

Planned Order Releases

Lead Time:
Part B: Gross Requirement

On Hand Inventory

Net Requirement

Planned Order Receipts

Planned Order Releases

Lead Time:
Part C: Gross Requirement

On Hand Inventory

Net Requirement

Planned Order Receipts

Planned Order Releases

Lead Time:
Part D: Gross Requirement

On Hand Inventory

Net Requirement

Planned Order Receipts

Planned Order Releases

Lead Time:
3 Product A is made of 2 units of Part B and

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