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 8. Assume lot-for- lot ordering. Below is information about the steppers and the quantity required for each parent. Item Lead Time On Hand Inventory Components Stepper 2 20 A(1), B(3), C(2) A 1 10 D(1), F(2) B 2 30 E(1), F(3) C 3 10 D(2), E(3) D 1 15 E 2 5 F 2 20 Develop a product structure diagram for Develop a net material requirements plan for

a) The average monthly demand requirement = ____units (round to nearest whole​ number.) B) The total stockout cost​ = ​$____(nearest whole number) C) The total inventory carrying cost​ = ​$____(nearest whole number) D) The total​ cost, excluding normal time labor​ costs, is​ = ​$_____(nearest whole number)

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10.5 An SKU has an annual demand of 10,000 units, each costing $20, ordering costs are $80 per order, and the cost of carrying inventory is 25%. Calculate the EOQ in units and then convert to dollars.

Develop a lot-for-lot solution and calculate total relevant costs for the gross requirements in the following table*. 5 6 7 30 70 30 9 10 11 12 60 10 70 Period 1 Gross requirements 20 2 Period Gross requirements On-hand at beginning of period 40 On-hand at end of period Order receipt Order release 3 40 1 20 4 *Holding cost = $3.50/unit/week; setup cost = $200; lead time = 1 week; beginning inventory = 40. Develop a lot-for-lot solution (enter your responses as whole numbers). 2 3 40 4 8 5 6 30 7 70 30 8 9 10 11 12 10 70 60 corn

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Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: January 1 Quantity (pounds) January 31 Quantity (pounds) Work-in-Process Inventory Cost Cost Molding department Finishing department None None 5,000 $ 15,000 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Direct Costs of Production Materials Conversion Molding department Finishing department $ 450,000 $ 90,000 80,290 The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required: 1. Prepare…

The fixed quantity version of EOQ compares and contrasts with the fixed interval version. Where will each of the scenarios be used?

If economic order quantity is 2,500 units and consumption in units for one year are 15,000 units, then number of orders in a year will be: a. 10 orders b. 5 orders c. 12 orders d. 6 orders

If no safety stock is required, what would the re-order point be?