Item: GF-4 Lot Size: Description: Motor subassembly Lead Time: 2 weeks Week 1 3 4 5 6 7 9 10 Gross 80 50 35 20 55 15 30 25 10 requirements Scheduled 60 receipts Projected on-hand inventory 20 Planned receipts Planned order releases 2.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
A partially completed inventory record for the motor sub-assembly is shown in Figure 11.39.
a. Complete the last three rows of the record by using the L4L rule.
b. Complete the last three rows of the record by using the POQ rule with P = 2.
c. Complete the last three rows of the record by using the POQ rule with P = 2.
d. If it costs the company $1 to hold a unit in inventory from one week to the next, and the cost to release an order is $50, which of the lot sizing rules used above will provide the lowest inventory holding + order release cost?
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