15.7. Draw a product structure diagram from the bill of material foran Xavier skateboard shown below. Assuming a 10% profit margin,how should the Xavier be priced?LevelItemQuantityPrice0--..Skateboard1- 1-..Deck1$54.90Grip tapeWheel assembly- 1---1.$4.95- 1-..--- 2--Wheels$8.95-- 2- -Bearings$4.95-- 2--Truck$33.90- 1---Nuts and bolts4$1.99- 1-..Riser$3.95BearingsTruckRiserDeckNuts & BoltsWheelsComponents of Xavier Skateboard2.

Answered: 15.7. Draw a product structure diagram…

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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1. Develop a level production plan for Covolo Diving Gear. What are the advantages and disadvantages of this plan? Could Covolo implement a pure chase plan, given the current capacity? Why? If sales continue to grow, what are the implications for production capacity at Covolo?
As the production planner for Xiangling HuProducts, Inc., you have been given a bill of material fora bracket that is made up of a base, two springs, and fourclamps. The base is assembled from one clamp and twohousings. Each clamp has one handle and one casting. Eachhousing has two bearings and one shaft. There is no inventoryon hand. a) Design a product structure noting the quantities for eachitem and show the low-level coding.b) Determine the gross quantities needed of each item if youare to assemble 50 brackets.c) Compute the net quantities needed if there are 25 of thebase and 100 of the clamp in stock.
Star Symphony would like to perform for a neighbouring city. Fixed costs for the performance total $5,000. Tickets will sell for $15 per person, and an outside organization responsible for processing ticket orders charges the symphony a fee of $2 per ticket. Star Symphony expects to sell 500 tickets.1. How many tickets must Star Symphony sell to break even?2. How many tickets must the symphony sell to earn a profit of $7,000?3. How much must Star Symphony have in sales dollars to break even?4. How much must Star Symphony have in sales dollars to earn a profit of $7,000?5. What is the symphony’s margin of safety in units and in sales dollars? Note question 4 and 5
Ritz Products’s materials manager, Tej Dhakar,must determine whether to make or buy a new semiconduc-tor for the wrist TV that the firm is about to produce. Onemillion units are expected to be produced over the life cycle.If the product is made, start-up and production costs of themake decision total $1 million, with a probability of .4 thatthe product will be satisfactory and a .6 probability that itwill not. If the product is not satisfactory, the firm will haveto reevaluate the decision. If the decision is reevaluated, thechoice will be whether to spend another $1 million to redesignthe semiconductor or to purchase. Likelihood of success thesecond time that the make decision is made is .9. If the secondmake decision also fails, the firm must purchase. Regardlessof when the purchase takes place, Dhakar’s best judgment ofcost is that Ritz will pay $.50 for each purchased semiconduc-tor plus $1 million in vendor development cost.a) Assuming that Ritz must have the semiconductor…
What is the rationale for (a) a phantom bill of material, (b) aplanning bill of material, and (c) a pseudo bill of material?
Focus on the difference between feasible alternatives (Principle 2)! Insulated concrete forms (ICF) can be used as a substitute for conventional wood framing in building construction. Heating and cooling bills will be about 50% less than in a similar wood-framed building in upstate New York. An ICF home will be approximately 10% more expensive to construct than a wood-framed home. For a typical 2,000 ft2 home costing $120 per ft2 to construct in upstate New York and costing $200 per month to heat and cool, how many months does it take for a 2,000 ft2 ICF home to pay back its extra construction cost?
DEVELOPING A PRODUCT STRUCTURE AND GROSS REQUIREMENTS Speaker Kits, Inc., packages high-fidelity components for mail order. Components for the top-of-the-line speaker kit, “Awesome” (A), include 2 Bs and 3 Cs. Each B consists of 2 Ds and 2 Es. Each of the Cs has 2 Fs and 2 Es. Each F includes 2 Ds and 1 G.It is an awesome sound system. (Most purchasers require hearing aids within 3 years, and at least onecourt case is pending because of structural damage to a men’s dormitory.) As we can see, the demand forB, C, D, E, F, and G is completely dependent on the master production schedule for A—the Awesomespeaker kits.
What is the rationale for (a) a phantom bill of material, (b) aplann ing bill of material, and (c) a pseudo bill of material?
5. Define a Master Production Schedule (MPS) and explain how it differs from a final assembly schedule. 6. Define Material Requirements Planning (MRP) and how it can benefit an organization. 7. Explain a bill of materials (BOM), bill of labor (BOL), and bill of resources (BOR) relate. 8. What are the components of an MRP record? 9. Explain the three lot-sizing methods, and under what circumstances each work best: a. Lot-for-Lot (LFL) b. Fixed Order Quantity (FOQ) c. Periodic Order Quantity (POQ) 10. What is capacity requirements planning (CRP)? PROBLEM 1. A company currently has no items in inventory. The demand for the next four months is 200, 400, 250 and 350 units. Determine the level production rate if a level strategy is selected with the goal of ending Period 4 with 100 units in inventory. 2. A company currently has no items in inventory. The demand for the next four months is 200, 400, 250 and 350 units. Assuming a level production rate of 250 units per month,…
You have just been notified that the lead time forcomponent G of product A ( You are product pla nner for product A (in Problem(A part structure, lead time (weeks), and on-handquantities for product A are shown in Figure 14. 14. From theinformation shown, generate:a) An indented bill of material fo r product A b) Net requirements for each part to produce I0 As in week 8using lot-for-lot. IP).) The field service manager, Mark Moon,has just called and told you that the requirements for B and Fshould each be increased by I 0 units for his repair requi rements inthe field.a) Prepare a list showing the quantity of each part required to produce the requirements for the service manager and the production request of I 0 Bs and Fs.                                                          b) Prepare a net requirement plan by date for the new requirements (for both production and field service), assuming that the field service manager wants his 10 units ofB and F in week 6 and the 10 production…
The following table lists the components needed to assemble an end item, lead times, and quantities on hand. Item End B C D E F G H LT (wk) 1 3 2 2 2 1 2 1 Amount on hand 0 10 9 25 11 32 3 0 a. If 18 units of the end item are to be assembled, how many additional units of E are needed? (Hint: You don't need to develop an MRP plan to determine this.) Additional units             b. An order for the end item is scheduled to be shipped at the start of week 14. What is the latest week that the order can be started and still be ready to ship on time? (Hint: You don't need to develop an MRP plan for this part either.) The latest week
You are product planner for product A (in Problem(A part structure, lead time (weeks), and on-handquantities for product A are shown in Figure 14. 14. From theinformation shown, generate:a) An indented bill of material fo r product A b) Net requirements for each part to produce I0 As in week 8using lot-for-lot. IP).) The field service manager, Mark Moon,has just called and told you that the requirements for B and Fshould each be increased by I 0 units for his repair requi rements inthe field.a) Prepare a list showing the quantity of each part required to produce the requirements for the service manager and the production request of I 0 Bs and Fs.                                                          b) Prepare a net requirement plan by date for the new requirements (for both production and field service), assuming that the field service manager wants his 10 units ofB and F in week 6 and the 10 production units of A in week 8.

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