Consider this MPS creation problem: Week Forecasted Demand Master Production Schedule (MPS) Projected available balance (PAB) The batch size is 80 and the should be as low as possible but not lower than zero. • The MPS is week 1 is • The MPS is week 2 is • The MPS is week 3 is • The MPS is week 4 is • The MPS is week 5 is • The MPS is week 6 is • The PAB in week 1 is 0 1 2 3 4 5 6 41 31 30 44 31 50 The PAB in week 6 is 60
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- List the system of inequalities which describe B in the graph below.ECON1003 Mathematics for Social Sciences Unit 3_Version 1 Page 33 6. Anya’s Jeans has production process organized in threedistinct stages: cutting; sewing and finishing. She produces threetypes of jeans, namely peddle-pushers, hipsters and low cuts. Thenumber of minutes each type requires in each production processin shown below.Type Cutting Sewing FinishingPeddle-Pusher 4 6 2Hipster 6 7 4Low Rider 9 3 6On average, there are 6400 minutes of cutting time, 3500 minutes ofsewing time and 2400 minutes of finishing time each day. Given thatthe company makes $10 profit on each peddle-pusher $ 50 on eachhipster and $60 on each low cut and that the company sells all thejeans made. List the system of inequalities for the cutting, sewingand finishing constraints.Usha Handling Company is currently faced with an inventory rotation problem. Thisdifficulty stems from the fact that some supplies must be used prior to a stated expiration date.Upon receipt, a new shipment of these perishable items must be stacked beneath the boxes that are currently in inventory. A substantial amount of time is consumed in restacking the items according to their expiration dates. The company would like to reduce the double and sometimes triple handling of items. How can this goal be achieved? Are there alternative solutions which might also be effective?A firm manages its inventory with an order-up-to model. Each period is one day, thelead time is two days, the order-up-to level is 10, and its inventory position at the start ofa day (before it submits an order for that day) is –4. Which of the following statementsis definitely true? a. Demand was four units yesterday.b. Demand was 10 units yesterday.c. There are at least four units backordered.d. There are 14 units on order before it orders today.e. After today’s order, there will be 14 units on order.f. It will receive more inventory today
- This type of problem can be recognized when an order interval is given (e.g.,inventory is ordered every 10 days) along with the demand rate, lead time, and quantity on hand atorder time. A lab orders a number of chemicals from the same supplier every 30 days. Lead time is five days.The assistant manager of the lab must determine how much of one of these chemicals to order. Acheck of stock revealed that eleven 25-milliliter (ml) jars are on hand. Daily usage of the chemical isapproximately normal with a mean of 15.2 ml per day and a standard deviation of 1.6 ml per day. Thedesired service level for this chemical is 95 percent.a. How many jars of the chemical should be ordered?b. What is the average amount of safety stock of the chemical?For Raw material A007, a company maintains a safety stock of 5,000 pounds. Its average inventory (taking into account the safety stock) is 15,000 pounds. What is the apparent order quantity (in lbs.)?. Custom Computers, Inc. assembles custom home computersystems. Th e heat sinks for the central processing units are boughtfor $12 each and are ordered in quantities of 1300 units. Annualdemand is 5200 heat sinks, the annual inventory holding cost is$3 per unit, and the cost to place an order is estimated to be $50.Assume that demand occurs continuously through the year andthat a new order is placed in time so the order arrives at the sametime as the previous inventory runs out.(a) Construct a base-case spreadsheet model to help analyzediff erent order quantities. Th e primary output of interestis the total annual inventory-related cost, comprisingtotal ordering cost and total holding cost. Holding costcan be applied to the average inventory level through theyear. Given the assumption about continuously occurringdemand and that orders arrive just in time, the averageinventory level will be half of the order quantity.(b) For the base-case order quantity of 1300 heat sinks, whatis the…
- Which of the following statements is FALSE of a fixed-quantity system (FQS)? Select one: a. In FQS, fixed quantity is ordered to bring the inventory position up to the replenishment level. b. In FQS with uncertain demand, the reorder point is chosen to include the demand during lead time, plus any safety stock. c. In FQS, inventory position is checked continuously, rather than at fixed intervals of time. d. In FQS, orders are placed when the inventory position reaches or drops below the reorder point. e. In FQS with uncertain demand, orders are placed with the same order quantity, but not necessarily with the same periodicity.. CPG Bagels starts the day with a large production run of bagels. Throughout the morning, additional bagels are produced as needed. The last bake is completed at 3 p.m. andthe store closes at 8 p.m. It costs approximately $0.20 in materials and labor to make a bagel. The price of a fresh bagel is $0.60. Bagels not sold by the end of the previous day are sold the next day as “day old” bagels in bags of six for $0.99 a bag. About two-thirds of the day-old bagels are sold; the remainder are just thrown away. There are many bagel flavors, but for simplicity, concentrate just on the plain bagels. The store manager predicts that demand for plain bagels from 3 p.m. until closing is normally distributed with a mean of 54 and a standard deviation of 21. a. How many bagels should the store have at 3 p.m. to maximize the store’s expected profit (from sales between 3 p.m. and closing)? (Hint: Assume day-old bagels are sold for $0.99/6 = $0.165 each; that is, don’t worry about the fact that…The weekly demand for a product is 770 units. The standard deviation of dailydemand is 10 units. The firm reviews its inventory every 28 days. Each order for the product arrives 9 days after placement. At the time of review, there are 10 units backorder. If 95 percent of all demand is to be satisfied from items in stock:a) How many units should be the safety stock?b) What’s the product’s inventory status?c) How many units should be ordered for this period?
- Which of the following assumptions is not one of the Economic Order Quantity Model assumptions, which is the most basic of the Inventory models? a) No out of stock allowed B) Materials must be delivered in one go c) Ordening and receving times are known and fixed d) The supplier is allowed to make a dscourt based on the order quuantity e) Demand is known and foxedHere are statistics on order sizes of Megalith Construction Supply’s shipments of two kinds of construction materials last year. Girders Rivets Mean 160 2800 Std. Dev. 48 702 Which order sizes have greater variability? Multiple Choice Rivets Cannot be determined without knowing n Girders They are the same.Happy Henry’s car dealer sells an imported car called the EX123. Once everythree months, a shipment of the cars is made to Happy Henry’s. Emergencyshipments can be made between these three-month intervals to resupply the carswhen inventory falls short of demand. The emergency shipments require twoweeks, and buyers are willing to wait this long for the cars, but will generally goelsewhere before the next three-month shipment is due.From experience, it appears that the demand for the EX123 over a three-monthinterval is normally distributed with a mean of 60 and a variance of 36. The cost ofholding an EX123 for one year is $500. Emergency shipments cost $250 per carover and above normal shipping costs.a. How many cars should Happy Henry’s be purchasing every three months?b. Repeat the calculations, assuming that excess demands are back-ordered fromone three-month period to the next. Assume a loss-of-goodwill cost of $100 forcustomers having to wait until the next three-month period and a…