Show work It is week 1 and there are currently 20 As in stock. We need 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 110 As each and A has a lead time of 2 week, when and how large of an order should be placed to meet the requirement of 300 As? A) Week 3, 300 As B) Week 1, 40 As C) Week 5, 40 As D) Week 3, 60 As E) Week 4, 300 As
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- 3. Irvine Consolidated Closets (ICC) builds and sells shelving for homes and offices. For a certain shelving unit, SS1, ICC has gross requirements of 500, 800, and 650 units in weeks 4, 5, and 6, respectively. The lead-time on the SS1 shelving unit is two weeks. ICC currently has 600 of the SS1 on hand and this product is ordered in lot sizes of 300, that is, the order in multiples of 300. a. Determine the MRP schedule for the SS1 unit over a time frame of weeks 1 through 6. When and for how many units should ICC place their orders for the SS1? b. A key component of the SS1 is the TT2. Each SS1 contains four TT2s. Currently TT2’s are ordered in lots of size 1000 and there are 800 on hand. TT2s have a one-week lead time. Determine the MRP schedule for the TT2 unit over a time frame of weeks 1 through 6. When and for how many units should ICC place their orders for the TT2? c. Suppose annual demand for the SS1 shelving unit is 32,500. ICC’s holding cost is $0.50 per week for each…Assume that you are the manager of Assembly, Inc. You have just received an order for 40 units ofan industrial robot, which is to be delivered at the start of week 7 of your schedule. Using the following information, determine how many units of subassembly G to order and the timing of thoseorders, given that subassembly G must be ordered in multiples of 80 units and all other componentsare ordered lot-for-lot. Assume that the components are used only for this particular robot.Item Lead Time (weeks) On Hand ComponentsRobot 2 10 B, G, C(3)B 1 5 E, FC 1 20 G(2), HE 2 4 —F 3 8 —G 2 15 —H 1 10 —A single inventory item is ordered from an outside supplier. The anticipateddemand for this item over the next 12 months is 6, 12, 4, 8, 15, 25, 20, 5, 10, 20, 5,12. Current inventory of this item is 4, and ending inventory should be 8. Assume aholding cost of $1 per period and a setup cost of $40. Determine the order policyfor this item based onc. Part period balancing
- 20.- Indicate how much ATP (available to promise) exists during 5 periods whose orders are 80, 10, 10, 0 and 30 and whose MPS (Master Production Schedule) is 0, 100, 0 and 100 respectively, in addition to counting an initial inventory of 100 units a)20, 110, 100, 200, 170 b)-80, -10, -10, 90, 60 c)20, 80, 0, 70, 0 d) 20, 110, 100, 220, 190 A work center has a machine that operates 8 hours a day for 5 days a week. Historically utilization has been 85% and efficiency 110%. What is the capacity cup?Problem 6 Part A:Available to promise in period 4 = 50Problem 6 Part B:PAB in period 7 = 35 In part A, the only thing that you need to do is to calculate the ATP in periods 1,4,5, and 7. In part B, remember that you are rolling through time. The part B solution spreadsheet starts with time period 2 and period 1 is now history. For the part B, you must capture all of the events that occurred during week 1. For example, I gave you that the beginning PAB is 45. If you had 20 in stock (from part A), you produced 50 as planned in period 1, and the actual demand for period 1 was 25, then the beginning PAB (your stock quantity) is 20+50-25=45. The forecast and MPS quantities will not change from part A to part B. After you accept each of the orders (simply add the new order quantities to the existing customer order quantities in the correct time bucket), you will then recalculate the PAB, and then recalculate the ATP.1. Which of the following statements about lot-sizing rules for MRP is true? a) The periodic order quantity (POQ) rule generates a higher level of average inventory since it creates inventory remnants. b) FOQ is a dynamic lot-sizing rule which reduces the amount of inventory, by doing a better job of matching the order quantity to the projected on-hand inventory quantity. c) The lot for lot rule minimizes inventory investment but maximizes the number of orders placed. d) In general, static lot-sizing rules introduce greater instability into the production process 2. Which one of the following is a reason to have small inventories? a) To improve customer service b) To reduce ordering costs c) To reduce equipment setup costs d) To reduce interest expense or opportunity costs 3. Which one of the following is the most likely example of dependent demand for an MRP controlled item? a) Demand for spare parts b) Demand directly from customers c) Demand from quality control department for…
- 1. RBF, an emerging singer, is getting ready to cut his first album. The cost of recordingthe CD is Php 500,000 but copies are Php 500 apiece. If the album can be sold forPhp1,500 each, (a) how many CDs must be sold to break even? (b)What is thebreakeven point in dollars?RBF is confident that demand for his album will substantially exceed the break-evenpoint computed above. So, Mikey is contemplating having his album at a classier (andpricier) studio. The cost to record the CD would rise to Php 90,000. However, since thisnew studio works with very high volume, production costs would fall to Php 200 per CD.(c) What is the breakeven point for this new process?(d) Compare this process to the process proposed in the pre SHOW COMPLETE SOLUTION.Electro Fans has just received an order for one thousand 20˝ fans due in week 7. Each fan consists of a housing assembly, two grills and a fan assembly. The housing assembly consists of a frame, two supports and a handle. The following table gives lead times, on-hand inventory, and scheduled receipts. Table 1.1: Lead time and quantity on hand Item Lead Time Qty on hand Lot size# Scheduled receipt 20˝ Fan Housing Frame Supports (2) Handle Grills (2) Fan Assembly 1 1 2 1 1 2 3 80 90 - 50 400 200* 150 - - - 100 400 450 - 50 fan assembly in week 2 * In week 3 it was found that 50% of the on hand inventory of the grills was damaged. # Items without any lot size given should be considered as lot-for-lot. (i) Construct a product structure. (ii) Construct a time-phased product structure. (iii) Prepare a net requirement plan.A product (A) consists of a base (B) and a casting (C). The base consists of a plate(P) and three fasteners (F). The lead time, current on-hand inventory and scheduledreceipts are given in the table below. All components are lot for lot. The MasterSchedule requires 100 units of product A be available in week 4 and 150 in week 6. Part Lead time On - Hand inventory Scheduled receipts A 1 20 None B 1 100 50 in Week 1 C 3 30 20 in Week 1, 30 in Week 2 P 2 0 50 in Week 1 F 3 0 30 in Week 1, 40 in Week 3 Required:A. Draw the product structure tree. B. Develop the MRP for Parts A, B, C, P, and F in order to meet the demand. Therows for MRP tables are Gross Requirement (GR), Scheduled Receipt (SR),On-Hand Inventory (OHI), Net Requirement (NR), and Planned Production (PP).
- A initially assume that Phi wants to minimize his inventory requirements. Assume that each order will be only for what is required for a single period. Calculate the net requirements and planned order releases for the gear boxes and input shafts. Assume that lot sizing is done using a lot-for-lot (L4L). Gear box requirements Week 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipt Planned order release Input shaft requirements Week 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipt Planned order releaseWhat is the available-to-promise amount for week 3 of the final master schedule bases on the figures shown in the table below? Master Schedule: Make-to-Stock Chase Production Beginning Inventory = 60 Units; Lot Size = 100 Units Week 0 1 2 3 4 5 6 Forecast 60 70 50 80 60 40 Customer orders 58 65 46 63 30 0 OHI 60 0 30 80 0 40 0 MPS 100 100 100 ATP 2 35 X 70a. Discuss why the EOQ formula may give poor results for determining planned order releases.b. If the forecasted demand for the end item is the same each period, will the EOQ formula result in optimal lot sizing at each level of the product structure? Explain.