Case Study: UPD Manufacturing

1304 WordsApr 28, 20136 Pages
Case: UPD Manufacturing Given, Demand, d = 6 Ordering Interval, OI = 89 Ordering cost, S = $32 Holding Cost/Carrying Cost, H = $.08 As there is no demand variability, the formula for quantity is: Q = d (LT + OI) – A (as there is no safety stock) ------- A - ROP (Reorder point) We know, A = d * LT, so the fixed order interval order quantity equation Q becomes Q = (d * LT) + (d * OI) – (d * LT) * Q = d * OI = (6) (89) = 534 units Therefore, ordering at six-week intervals requires an order quantity of 534 units. Now, the optimal order quantity is determined by using EOQ equation. Q = sqrt(2dS/H) = sqrt[(2*89*32)/.08] = 266.833 (or) 267 The weekly total cost based on optimal…show more content…
Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as the business needs shift and react to the wider environment. | | | | | | | | | | | No. 10: TIME, PLEASE What project durations should Smitty include in the proposal for these risks of not delivering the project on time: 5%, 10%, and 15% ? PATH | EXPECTED DURATION | STANDARD DEVIATION | A | 10 | 4 | B | 14 | 2 | C | 13 | 2 | PATH A Z= X – t (path) Standard deviation Z = (X – 10) / 4 = 0.05 Z = (X – 10) = 0.05 x 4 Z = (X – 10) = 0.2 Z = X = 0.2 + 10 Z = X = 10.2 → The project duration for path A is 10 weeks 2 days PATH B Z= X – t (path) Standard deviation Z = (X – 14) / 2 = 0.1 Z = (X – 14) = 0.1 x 2 Z = (X – 14) = 0.2 Z = X = 0.2 + 14 Z = X = 14.2 → The project duration for path B is 14 weeks 2 days PATH C Z= X – t (path) Standard deviation Z = (X – 13) / 2 = 0.15 Z = (X – 13) = 0.15 x 2 Z = (X – 13) = 0.3 Z = X = 0.3 + 13 Z = X = 13.2 → The project duration for path C is 13 weeks 2 days What are the pros and cons of quoting project times aggressively? Project time management is a special process used to plan, operate and monitor projects. Its aim is to efficiently achieve project goals and objectives or solve a particular problem. It is different from general management, in part, because of its focus on completing well-defined goals within
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