OPERATIONS MANAGEMENT W/ MYLAB <C> 2018
18th Edition
ISBN: 9781323875476
Author: HEIZER
Publisher: Pearson Custom Publishing
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 14, Problem 26P
M. de Koster, of Rene Enterprises, has the master production plan shown below:
Lead time = 1 period; setup cost = $200; holding cost = $10 per week; 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?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
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?
Grace Greenberg, production planner for Science and Technology Labs, in New Jersey, has the master production plan shown here: Lead time= I period; setup costs = $200; holding cost = $10 perweek; stockout cost = $10 per week. Develop an ordering planand costs for Grace, using these techniques:a) Lot-for-lot. b) EOQ.c) POQ. d) Which plan has the lowest cost?
Hip Replacements, Inc., has a master production schedule forits newest model, as shown below, a setup cost of $50, a holdingcost per week of $2, beginning inventory of 0, and lead time of1 week. What are the costs of using lot-for-lot for this l0-weekperiod?
WEEK 1 2 3 4 5 6 7 8 9 10Gross requirements 0 0 50 0 0 35 15 0 100 0Scheduled receiptsProjected on hand 0 0 0 0 0 0 0 0 0 00Net requirements 0 0 50 0 0 35 15 0 100Planned order receipts 50 35 15 100Planned order releases 50 35 15 100
Chapter 14 Solutions
OPERATIONS MANAGEMENT W/ MYLAB <C> 2018
Ch. 14 - Ethical Dilemma For many months your prospective...Ch. 14 - What is the difference between a gross...Ch. 14 - Prob. 2DQCh. 14 - What are the similarities between MRP and DRP?Ch. 14 - How does MRP II differ from MRP?Ch. 14 - Which is the best lot-sizing policy for...Ch. 14 - What impact does ignoring carrying cost in the...Ch. 14 - MRP is more than an inventory system; what...Ch. 14 - What are the options for the production planner...Ch. 14 - Master schedules are expressed in three different...
Ch. 14 - What functions of the firm affect an MRP system?...Ch. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - Prob. 14DQCh. 14 - As an approach to inventory management, how does...Ch. 14 - Prob. 16DQCh. 14 - Use the Web or other sources to: a) Find stories...Ch. 14 - Prob. 18DQCh. 14 - Prob. 19DQCh. 14 - You have developed the following simple product...Ch. 14 - You are expected to have the gift bags in Problem...Ch. 14 - Prob. 3PCh. 14 - Your boss at Xiangling Hu Products, Inc., has just...Ch. 14 - The demand for subassembly S is 100 units in week...Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - You are product planner for product A (in Problem...Ch. 14 - Prob. 16PCh. 14 - Heather Adams, production manager for a Colorado...Ch. 14 - Prob. 22PCh. 14 - Data Table for Problems 14.22 through 14.25 ...Ch. 14 - Develop a POQ solution and calculate total...Ch. 14 - Using your answers for the lot sizes computed in...Ch. 14 - M. de Koster, of Rene Enterprises, has the master...Ch. 14 - Grace Greenberg, production planner for Science...Ch. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Courtney Kamauf schedules production of a popular...Ch. 14 - Using the data for the coffee table in Problem...Ch. 14 - Prob. 1.1VCCh. 14 - Prob. 1.2VCCh. 14 - Prob. 1.3VCCh. 14 - MRP at Wheeled Coach Wheeled Coach, the worlds...Ch. 14 - MRP at Wheeled Coach Wheeled Coach, the worlds...Ch. 14 - Prob. 2.3VC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- What information is needed to develop a make-to-order production plan? How does this differ from that needed for a make-to-stock plan?arrow_forwardMr. Waleed is running furniture manufacturing business. He required raw material on regular basis.He uses the best suitable methods of purchasing of material.He tried to used preparation of inventor budgets, perpetual inventory system, just-in- time, ABC analysis but none of the above suited to his business.Once he had to stop his production, when he was using Just-In- Time purchasing method. One day Mr.Waleed explain all the cost details to his cost accountant as follows: The normal usage was 50 Units.In case of low demand his minimum usage was only 25 units. During high demand time Mr. Waleed used to purchase 75 units.Mainly he required two types of raw material like Material 1 and Material 2, His reorder quantity for Martial 1 was 300 Units & For Material 2 was 500 Units.His cost accountant told him that they need 40 Units as average. Mr. Waleed was very good at planning, but in case of emergency he used to wait 1 day for material 1 and 2 days for material 2 to get…arrow_forwardGiven the bill of material and the on-hand quantities below, compute the net requirements for each item. The gross requirement for A is 150 units. Summarize your solution in a table. Item On-Hand Inventory A 40 B 50 C 100 D 70 E 25arrow_forward
- Heather Adams, production manager for a Colorado exercise equipment manufacturer, needs to schedule an order for 50 UltimaSteppers, which are to be shipped in week 9. Subscripts indicate quantity required for each parent. Assumelot-for-lot ordering. c) Develop a net material requirements plan for F (enter your responses as whole numbers). Week Lead Time Item 2 3 4 5 6 7 8 9 (weeks) F Gross req Insert answer insert answer 2 On hand insert answer insert answer Net req insert answer insert answer Order receipt insert answer insert answer Order release insert answer insert answerarrow_forwardProduct A is made from components B and C. Item B, inturn, is made from D and E. Item C also is an intermediateitem, made from F and H. Finally, intermediate item E ismade from H and G. Note that item H has two parents. Thefollowing are item lead times:a. What lead time (in weeks) is needed to respond to a cus-tomer order for product A, assuming no existing invento-ries or scheduled receipts?b. What is the customer response time if all purchased items(i.e., D, F, G, and H) are in inventory?c. If you are allowed to keep just one purchased item instock, which one would you choose?arrow_forwardProduct A is made from components B and C. Item B, inturn, is made from D and E. Item C also is an intermediateitem, made from F and H. Finally, intermediate item E ismade from H and G. Note that item H has two parents. Thefollowing are item lead times: a. What lead time (in weeks) is needed to respond to a cus-tomer order for product A, assuming no existing invento-ries or scheduled receipts?b. What is the customer response time if all purchased items(i.e., D, F, G, and H) are in inventory?c. If you are allowed to keep just one purchased item instock, which one would you choose?arrow_forward
- 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 75arrow_forwardHeather Adams, production manager for a Colorado exercise equipment manufacturer, needs to schedule an order for 50 UltimaSteppers, which are to be shipped in week 8. Subscripts indicate quantity required for each parent. Assume lot-for-lot ordering. b. Choose correct time phased-structures c. Develop a net material requirements plan for F (enter your responses as whole numbers).arrow_forwardA factory has just received an order for 100 units of an end item, which are to be shipped at the start of week 8. Relevant information of the end item and the components is as follows. Item Lead Time (weeks) On Hand Inventory Scheduled receipts Order Policy Direct Components End item 2 30 lot for lot A(4), B(3), C(2) A 3 20 54 at week 3 lot for lot D(2) B 2 10 68 at week 4 lot for lot D(5) C 1 100 multiple of 60 D 1 20 min. of 500 Develop the material requirements plan (please print out an empty MRP table to work with), and determine what the "projected available balance" is for component D at week 8. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Can you say if it is better to carry inventory or create back orders? Discuss the pros and cons of eacharrow_forwardCan you explain how they got these numbers? I have no idea where the numbers for ending inventory came from. Or explain how to do a level plan analysis.arrow_forwardA’s lead time is 1 week; B’s lead time is 2 weeks; and C’s lead time is 2 weeks. This is true regardless of order size. Currently you have the following amounts in on-hand inventory; A = 50. a) How many units of B and C will I need to produce for A if I have an order for 100 units of A? b) Give me a time-phased assembly plan for A, B, and C such that I will receive 100 units of A at the beginning of Week 5. Assume that I can work on B and C at the same time (overlap).arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY