Concept explainers
a)
Interpretation:The planned order release for the valve casing is to be determined.
Concept Introduction:
The operational feasibility can be defined as the measurement of the problem solving capacity of the proposed system and it also checks that in which manner this proposed system is satisfying the requirements which are identified in the requirement analysis phase during the system development.
b)
Interpretation: The gross requirements schedule for the valves obtained for the lot sizing is to be calculated.
Concept Introduction:
The operational feasibility can be defined as the measurement of the problem solving capacity of the proposed system and it also checks that in which manner this proposed system is satisfying the requirements which are identified in the requirement analysis phase during the system development.
c)
Interpretation:The feasibility of the gross requirement schedule obtained from the above solution is to be determined.
Concept Introduction:
The operational feasibility can be defined as the measurement of the problem solving capacity of the proposed system and it also checks that in which manner this proposed system is satisfying the requirements which are identified in the requirement analysis phase during the system development.
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Chapter 8 Solutions
Production and Operations Analysis, Seventh Edition
- Exercise 2: The demand per year (D) for product X is 12,100 units. The costs of placing an order (S) are $4.50. The unit cost (C) of the item is $25.00. The maintenance cost (H) per unit per year is 30% of the item's cost. 1. Use the economic order quantity (EOQ) model to determine: *Optimal quantity to order* The expected number of orders*Optimal time between orders*The total annual cost of maintaining that optimal amountNOTE: Show calculations of how you arrived at each amount 2. Answer, what are the potential benefits of using EOQ analysis for inventory management? How can you help businesses strike a balance between inventory holding costs and ordering costs?arrow_forwardMaster production schedule (MPS) A kite manufacturer produces the most popular model, the Long kite. Suppose that there are currently 10 long Kites in inventory and that there are customer orders that have been committed and must be filled. Suppose that a production lot size of 100 long kites is used. Prepare a master production schedule for the long kite model. Week 1 2 4 6. 7 8. Forecast 30 30 30 40 40 40 45 55 Customer orders 35 15 20 18 12 15 Projected inventory MPS 100arrow_forwardMr. Hoi is the manager of a shop that assembles power tools. You have just received an order for 50 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws is (given in the picture) Suppose now that capacity to produce part E is limited to a maximum of 100 units per period. Revise the planned-order releases for periods 1 through 4 so that the maximum is not exceeded in any period, keeping in mind an objective of minimizing carrying costs. The quantities need not be equal in every period. Note that the gross requirements for E will remain the same. However, quantities in some of the other rows will change. Determine the new cell values for those rows.arrow_forward
- Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 131 units. The following is in indented form: ITEM DESCRIPTION Bracket assembly Wall board USAGE 1 A 4 Hanger subassembly Hanger casting Ceramic knob Rivet head screw Metal tong Plastic cap E G 2 Below is a table indicating current inventory levels: Item Inventory A B E G 23 18 55 25 200 170 1,100 90 b. What are the net requirements of each item in the MPS? (Leave no cells blank be certain to enter "0" wherever requirec Item Net Requirements A F Nevtarrow_forwardIf the the Net Requirement for a product for a particular time period in a MRP problem is 78 and the organization uses a policy of ordering in multiples of 100, what would be the Planned Order Receipt?arrow_forwardSemans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 125 units. The following is the BOM in indented form: ITEM DESCRIPTION USAGE X Bracket assembly 1 A Wall board 4 B Hanger subassembly 2 D Hanger casting 4 E Ceramic knob 1 C Rivet head screw 3 F Metal tong 4 G Plastic cap 2 Below is a table indicating current inventory levels: Item X A B C D E F G Inventory 22 15 75 24 202 139 1,000 95 What are the Net Requirements for X, A, B, and C respectively?arrow_forward
- A Corporation assembles two products as shown in the product structures below. It has orders for 480 on period 8 and 100 units on period 9 of product X.. Develop the MRP table for each of the items. Item Amount on hand Schedule receipts Lot-sizing rule X 180 0 L4L A 100 0 Periodic order quantity (2 weeks) B 50 0 100 C 50 0 200 D 50 0 400 X LT = 2 A (2) LT = 2 B (1) LT = 2 C (3) LT = 1 D (1) LT = 3 D (2) LT =2arrow_forwardCourtney Kamauf schedules production of a popular Rustic Coffee Table at Kamauf Enterprises, Inc. The tablerequires a top, four legs, 18 gallon of stain, 116 gallon of glue, 2 shortbraces between the legs and 2 long braces between the legs, anda brass cap that goes on the bottom of each leg. She has 100 gallons of glue in inventory, but none of the other components. Allitems except the brass caps, stain, and glue are ordered on a lotfor-lot basis. The caps are purchased in quantities of 1,000, stainand glue by the gallon. Lead time is 1 day for each item. Schedulethe order releases necessary to produce 640 coffee tables on days5 and 6, and 128 on days 7 and 8.arrow_forwardAssume you are the manager of a shop that assembles power tools. You have just received an order for 55 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws follows: Item Lead Time (weeks) On Hand Saw A B C D E F 2 1 2 2 1 1 2 Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipt Planned order release Ĉ E(3) & E(2) LT = 1 week Lot size: Lot-for-Lot 15 10 5 65 20 10 30 Skip Extension Tip: Double click to open in new tab Show Transcribed Text Develop the material requirements plan for component E using lot-for-lot ordering for all items. (Leave no cells blank - be certain to enter "0" wherever required.) Components A(2), B(1), C(4) E(3), D(1) D (2), F(3) E(2), D (2) Beg. Inv. 1 2 3 190 5 210 6arrow_forward
- Consider the bill of material for Product J and the data given in the following table. The gross requirements for J are 200 units in week 6 and 270 units in week 8. Use the min 350 lot-sizing rule for M. What are the quantities of the planned orders for the M for the first seven weeks? K(1) L(4) M (2) Item Lead Time Quantity on Hand Scheduled receipts 1 30 20 30 in week 2 K 2. 40 10 in week 1 O a. 0,0,350,540,0,0,0 O b. 0,0,0,350,0,480,0 Oc. 0,0,290,350,0,0,0 O d. 0,0,290,0,540,0,0 210521224709-39153arrow_forwardElectro 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.arrow_forwarda. If demand for the new videotape recorder is expected to be constant with a rate of 20 units per month, what is the recommended order quantity for the videotape recorder? b. What are the estimated annual inventory holding and ordering costs associated with this product? c. How many orders will be placed per year? d. With 250 working days per year, what is the cycle time for this product?arrow_forward
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