ABC has the following, master production plan Holding cost= 5$/unit/week Setup cost = 50$ Stockout cost= 3$/unit/week Beginning inventory = 40 Lead time= 1 week -   1 2 3 4 5 6 7 8 9 10 11 12 Gross requirement   40   50   80 50 20   10 60   70 Scheduled receipt         20                 On hand 50                         Net requirements                           Planned order receipt                           Planned order release                           1 - Using EOQ with an ordinary quantity = 150 the total setup cost is: 2- Using POQ with an interval of 5 weeks, the planned order release in week 2 is 3- Using lot-for-lot, what is the net requirements in week 5   Explain your answer

Reorder Point Ordering: Average demand per day () is 25 units, with a std. dev. of (od) 15 units. Lead time (LT) is 49 days. Find demand during lead time (DDL), safety stock (SS) and reorder point (ROP ) for 4-sigma (z = 4). DDL= 500 units, SS = 1225 units, ROP = 1645 units DDL= 1,645 units, SS=420 units, ROP = 1225 units DDL= 1,225 units, SS = 420 units, ROP = 1645 units DDL= 0 units, SS = 1225 units, ROP = 420 units DDL= 420 units, SS = 1645 units, ROP = 420 units

A manufacturing company produces two products X and Y. Each product X requires one A and two Bs. Each B requires one C and one D. Each product Y requires 1 C and 4Ds. Table Q5A shows data from the inventory records of components.  Table Q5A Data category           A B  C D Lot - sizing rule Fixed order quantity = 250 Lot for lot Lot for lot Fixed order quantity = 1000 Lead time 3 weeks 2 weeks  1 week 2 weeks Beginning inventory 70 0 200 800 The MPS for products X and Y is given in Table Q5B. The on-hand inventories are as follows: X = 100, Y = 30. The only scheduled receipts are 250 units of X in period 2.The lead times are as follows: X = 2 weeks, Y = 3 weeks. The chase strategy is used for both products. Table Q5B                                                                                    Demand in period Product SS 1 2 3 4 5 6 7 8 X 50     300     200   250 Y 30             400   Required: a) Draw a product structure tree for each product. b) Develop…

Reorder Point Ordering: Average daily demand ( d) is 5 units with a std. dev. (od) of 1 unit. Average lead time ( LT) is 24 days with a std. dev. (OLT) of 1 day. The inventory manager wants to operate within 3 std. deviations (z = 3). Find the reorder point (ROP) and safety stock (S). ROP=141, SS=120 ROP=141, SS=21 ROP=120, SS=21 ROP=21, SS=141