1. Sit-Yuen Foo has produced monthly forecasts of demand for a family ofproducts as shown below. At the end of each month he reviews performance,and assigns a notional holding cost of $30 for every unit held in stock. If thereare shortages, 20 per cent of orders are lost with a cost of $300 a unit, and therest are met by back-orders, with a cost of $75 a unit. Each time the productionrate changes there is a cost of $22,500. Designed capacity is 600 units a month,but utilization seldom reaches 80 per cent. How can Sit-Yuen Foo design anaggregate plan for the products?Month346.7810Aggregate demand 460 420 390 450 540 375 240 150 100 210

Find the Given details below: Month 1 2 3 4 5 6 7 8 9 10 Total Aggregate demand 460 420 390 450…

Answered: Sit-Yuen Foo has produced monthly…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The forecasted annual demand for a company is 4000 units. It costs $200 each time an order is placed, and the annual costs of storage is $0.50 per unit. Calculate the EOQ. a. 1789 b. 200 c. 2385 d. 3500
10. Mention and describe what each of the 4 types of approaches to demand analysis discussed in class consists of.
5.B) Biona Enterprise usually gets everyday order of a hundred dozen units while the production can make triple amount of the orders. Thus, any surplus must be deposited in the storage with a cost of $9.50 per unit. Once order takes place, the enterprise will serve it within four working days at $200 for the delivery charges. The enterprise works five days a week and closes it operations three weeks per year while keep some stocks approximately 3% of the yearly demand. (a) Find the optimum value of ordering. (b) The size of Kanban. (c) How frequent the enterprise should deliver the orders in a six-month period?
C). Given the following data, calculate a level production plan, quarterly ending inventory, and average quarterly inventory. If inventory carrying costs are $6 per unit per quarter, what is the annual carrying cost? Opening and ending inventory are zero. Quarter 1 Quarter 2| Quarter 3 Quarter 4 Totals Forecast Demand 5000 7000 8500 9500 Production Ending Inventory Average Inventory Inventory Cost If the company always carries 100 units of safety stock, what is the annual cost of carrying it? D) Perform an ABC analysis on the following set of products. Annual Item Demand Unit Cost A211 800 $9 B390 100 $90 C003 450 $6 D100 400 $100 E707 85 $2,000 F660 250 $320 G473 500 $75 Н921 100 $75
Over the past 12 months, Super Toy Mart has experienced a demand variance of 10,250 units and has produced an order variance of 12,050 units. Part 2 a) The bullwhip measure for Super Toy Mart is ______ (round your response to two decimal places). Part 3 b) If Super Toy Mart had made a perfect forecast of demand over the past 12 months and had decided to order 1/12 of that annual demand each month, the bullwhip measure would have been ______ (round your response to the nearest whole number.)
1. A local producer of vegetables is deciding how much inventory to have to meet the next week's demand. Vegetable products are perishable with a shelf-life of a week. Based on the historical observations, the company expects the weekly demand to follow a normal distribution with mean 4500 pounds and standard deviation of 400 pounds. The price of the product is $14 per pound in the store, and it costs $6 to produce. If there are any leftovers, the company is required to dispose them safely to avoid any pollution. This process costs $0.5 per pound. Answer the following questions. a) What is the cost of overage per pound? b) What is the cost of underage per pound? c) What is the optimal order quantity?
Q/ You have the following data on the stock situation of a material in an industrial company: Annual consumption: 12000 pieces, purchase price of the piece: 120 monetary units, storage cost: 15% of the value of the piece, purchase order cost: 900 monetary units, minimum inventory ( Safety limit): 250 pieces. Calculate: 1- The economic volume of the purchase order 2- Re- order point 3- The optimum number of requisitions per year?
1. Using the data provided here for problem 1. Calculate the following: 6 7 8 | 9 Week Demand 1| 2 3 4 5 2554 2333 4678 4525 2243 2988 2301 3777 3245 2122 2987 2487 2567 10 11 12 13 a. Average weekly demand. b. Target inventory for 98% Inventory Service Level for this period if you get replenished with new inventory every two weeks. Formulas used: a. b.
. Characterize the following decision as either tactical or strategic: The discounts to offeron inventory available for an end-of-season sale.a. Tactical b. Strategic
A jewelry shop procures a ring at $20 each and sells it at $80 each. Weekly demands for the ring over the past 20 weeks are as follows. Demand 51 52 53 54 55 56 57 58 59 60 Frequency o 1 3 2 2 3 4 2 2 1 What are the under-stocking and over-stocking costs for the shop? What is the newsvendor critical ratio? How many rings per week should the shop order? Suppose that the weekly demand is uniformly distributed between 40 and 80. How many rings per week should the shop order?
ABC analysis on the following set of products Item Annual Demand Unit CostA 211 800 R9B 390 100 R90C 003 450 R6D 100 400 R100E 707 85 R2,000F 660 250 R320G 473 500 R75H 921 100 R75 Soft goods department sells 175 units per month of a certain large bath towel. The unit cost of a towel to the manufacturer is R2.50 and the cost of placing an order has been estimated to be R12.00. There is an inventory carrying charge of 27% of the unit cost per year. What is the optimal order quantity, the order frequency, and the annual holding and setup cost. If the ordering cost can be cut to R4.00, what will be the new economicorder quantity, the order frequency, and annual holding and setup costs.
11. Provide an example for each type of approach to demand analysis.

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