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Problem Shieet 21

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Assignment 2 (Due December 13)

Please read the following instructions carefully.

• Please submit your answer report at the beginning of class on December 13. • Late analyses will not be accepted. • You may discuss the assignment with your classmates. • You should individually prepare and submit your report. • The answers should show all steps but be concise and to the point. • Your answer report should be prepared in WORD and printed in A4 or letter size sheets.

Solve the following problems.
(Numbered problems are from the textbook 8th edition.)

1. Mr. Smith would like to set up a package delivery service for 7 cities (Atlanta, Chicago, Dallas, D.C., Los Angeles, New York, and San Francisco). If a …show more content…

To maintain an 84.134% service level, what are the required total inventories for (1) the four retail store system, and (2) the online store system?

11. Problem 13.12

12. Problem 13.22

13. Young & Company uses a Material Requirement Planning (MRP) system for its product X. 110 units of X are required in week 10 (90 firm orders and 20 forecast). The bill of material for X and the inventory record file are as follows:

BOM for Product X
[pic]
Inventory Record File for Product X

|Item |On-Hand |Lead Time (Weeks) |
|X |75 |2 |
|A |50 |4 |
|B |25 |1 |
|C |20 |2 |
|D |40 |3 |
|E |0 |0 |

What are the planned order releases for item C from week 1 to week 10 using the Lot-for-Lot method? (You may use the MRP Work Sheet for Product X to answer the question.)

MRP Work Sheet for Product X
| |Week: |1 |2 |3 |4 |5 |

14. (1) What is the setup schedule and amounts for Jack & Company from week 1 to week 6 using Lot-for-Lot (L4L) method? (2) What is the total cost?

15. (1) What is the setup schedule and

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