Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 11, Problem 2.2Q
Summary Introduction
Case Summary:
B Company builds finished good A which has two child items, namely B and C. Lead time is 10 weeks for each item. Items of B and C are in inventory. Order for A item has been done by the client which must be shipped in weeks.
Interpretation:
Quantity of A, B and C to be ordered and it’s duration to order.
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M. de Koster, of Rene Enterprises, has the master production plan shown here: Lead time = I period; setup cost= $200; holding cost = $10 perweek; stockout cost = $10 per week. Your job is to develop an ordering plan and costs for:a) Lot-for-lot. b) EOQ.c) POQ. d) Which plan has the lowest cost?
William Beville's computer training school, in Richmond, stocks workbooks with the following characterics: D= 19,500 Units/year, S = $25/order, H = $4/unit/year. Calculate the EOQ for the workbooks?
Daily demand for an item is shown here. Assume a holdingcost of $0.50 per unit per day, a setup cost of $100 persetup, a lead time of one day and 70 units on hand. Deter-mine when a work order should be released for the itemand the size of the order using the L4L, EOQ, and POQ lotsizing techniques. Which technique produces the lowesttotal cost?
Period 1 2 3 4 5 6 7 8 9 10Gross Requirement 50 30 25 35 40 50 35 45 70 75
Chapter 11 Solutions
Practical Operations Management
Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6P
Ch. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10PCh. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Prob. 23PCh. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 30PCh. 11 - Prob. 31PCh. 11 - Prob. 32PCh. 11 - Prob. 33PCh. 11 - Prob. 34PCh. 11 - Prob. 1.1QCh. 11 - Prob. 1.2QCh. 11 - Prob. 1.3QCh. 11 - Prob. 2.2Q
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