EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 13, Problem 9PA
Summary Introduction
Interpretation:
Net requirements for each item assuming zero lead items.
Concept Introduction:
Operation management is a part of business administration in which goods and services are produced or redesigned with the highest level of efficiency to earn maximum profit.
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Courtney 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.
A firm has the following gross requirements for Item F. If ordering costs are $60 per order and carrying costs are $0.50 per period.
If Mult. 60 lot sizing is used, the planned order releases is
Group of answer choices
60 in period 2 and 80 in period 3
120 in period 2 and 60 in period 3
80 in period 1 and 0 in period 3
0 in period 1 and 40 in period 3
Tuff-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of frame sizes, colors, and component
combinations. Identical bicycles are produced in lots of 110. The projected demand, lot size, and time standards are
shown in the following table:
i
Item
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Lot size
Standard processing time
Standard setup time
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Mountain
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0.50 hour/unit
3 hours/lot
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will be required next year to meet expected demand without using overtime and without decreasing the firm's current
capacity cushion?
The number of workstations required next year is. (Enter your response rounded up to the next whole number.)
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