Concept explainers
a)
Interpretation: Determine the lot sizing obtained from the EOQ formula.
Concept Introduction: EOQ (Economic Order Quantity) is a Firm should include the inventory with each and every order to reduce the total number of costs of inventory like order cost, setup holding cost, Shortage cost. Etc.
b)
Interpretation: Determine the lot sizes using the silver-meal heuristic.
Concept Introduction: Silver-Meal Heuristic method is the one of the forward method that determines the average cost per period as the process of the total number of periods to the current order to be expand and stop the process when the process enter into the increase level.
c)
Interpretation: Determine the lot sizes using Least Unit Cost heuristic.
Concept Introduction: one of the lot-sizing technique method is Least Unit Cost (LUC) method. The main advantage is that it is more complete analysis technique and also concentrate on the setup cost will change when the size of the order increases.
d)
Interpretation: Determine the lot sizes using Part Period Balancing method.
Concept Introduction: Part Period Balancing (PPB) method is the same as the EOQ (Economic Order Quantity).PPB is the Lot-sizing method to recover the lowest cost in interrelated between order cost and inventory cost.
e)
Interpretation: Compare the holding and setup costs obtained over the six periods using the policies found in Part (a) and Part (b) with the cost of a lot-for-lot policy.
Concept Introduction: one of the flexible policy is lot-for-lot policy. In this policy, the system reacts on the original demand with adding the anticipated demand from the
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EBK PRODUCTION AND OPERATIONS ANALYSIS
- Consider the following information. PART X Gross Requirements Scheduled Receipts Projected On-Hand Inventory 100 Q = 60, LT= 3 weeks, Safety Stock = 5 1 70 70 PART X Gross Requirements Scheduled Receipts Projected On-Hand Inventory 100 Planned Order Releases 1 70 70 100 2 0 > X WEEK 3 40 Compute the planned order releases and projected on-hand inventory for component part X. Round your answers to the nearest whole number. If your answer is zero, enter "0". 2 0 4 0 100 WEEK 3 40 5 160 60 4 0 40 0 X 5 160 Check My Work -60 0arrow_forwardPranuec Company mai Tactures, assembles, and rebunds material handing equipment used Tn war ses and uistr iters. One product, called a Liftmaster, is assembled from four components: a frame, a motor, two supports, and a metal strap. Frandec's production schedule calls for 6000 Liftmasters to be made next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may be either manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown. Component Manufacturing Cost Purchase Cost Frame $39.00 $52.00 Support $12.50 $16.00 Strap $7.50 $8.50 Three departments are involved in the production of these components. The time (in minutes per unit) required to process each component in each department and the available capacity (in hours) for the three departments are as follows: Department Component Cutting Milling Shaping Frame 3.6 2.3 3.2 Support 1.4 1.8 2.7 Strap 0.9 1.8 Capacity (hours) 370 430…arrow_forward2-Using the worksheet, what is the cost for a EOQ MRP strategy? Note: round your EOQ calculation to the nearest whole number (no fractions of units) Answer format is XXXX without the $ symbol or a comma separator. Setup Cost = $350/order; Inventory Holding Cost = $2.50 per part per week; Leadtime = 1 week 2. EOQ - Week 1 2 3 4 5 6 7 8 9 10 11 12 13 Gross Requirements 65 50 90 85 90 60 50 50 80 85 80 65 50 Scheduled Receipts Projected OH = 50 Net Requirements Planned Order Receipts Planned Order Releases8arrow_forward
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- 2. The time-phased net requirements for the base assembly in a table lamp over the next six weeks are: Week 1 2 3 4 5 6 Requirements 335 240 180 320 320 200 The setup cost for the construction of the base assembly is $200, and the holding cost is S0.30 per assembly per week. a. What lot sizing do you obtain from the EOQ formula? b. Determine the lot sizes using the Silver-Meal heuristic. c. Determine the lot sizes using the least unit cost heuristic. d. Determine the lot sizes using part period balancing. e. Determine the lot size using the Wagner-Whitin algorithm. f. Compare the holding and setup costs obtained over the six periods using the policies found in parts (a) through (e) with the cost of a lot-for-lot policy.arrow_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. Item Lead Time On-Hand Inventory Components Stepper 2 20 A(2), B(2), C(2) A 1 10 D(1), F(2) B 2 20 E(2), F(3) C 2 10 D(2), E(1) D 1 15 E 2 5 F 2 20 c) Develop a net material requirements plan for F (enter your responses as whole numbers). Week Lead Time Item 1 2 3 4 5 6 7 8 (weeks) F Gross req 2 On hand Net req enter your response here enter your response here Order receipt enter your response here enter your…arrow_forwardFor the following bill of material, if we need to produce 10 units of finished product P, how many component C do we need? Assume there is no on-hand inventory. P M(3) 80 0 120 O 16 40 160 N(4) B(3) C(4) D(5) C(4)arrow_forward
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