Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 14, Problem 28P
a)
Summary Introduction
To determine: The total cost using EOQ.
b)
Summary Introduction
To determine: The total cost using Lot for lot.
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Keebock, a maker of outstanding running shoes, keeps the soles of its size 13 running shoes in inventory for one period at a cost of $.25 per unit. The setup costs are $50. Beginninginventory is zero, and lead time is I week. Shown here are the net requirements per period. Determine Keebock's cost based ona) EOQ. b) Lot-for-lot.
Using the gross requirements schedule below*, prepare an alternative ordering system that orders every 3 weeks for 3 weeks ahead (a periodic order quantity). What is the cost of this
ordering system?
Period
1 2 3 4 5 6 7
Gross requirements 25 20 40 0 10 50 30
The cost of this ordering system is $
Prepare a net requirements plan (enter your responses as whole numbers).
*Holding cost = $1/unit/week; setup cost = $200; lead time = 1 week; beginning inventory = 25 units.
Period
Gross requirements
On-hand at beginning of period
On-hand at end of period
Net requirements
Order receipt
Order release
(enter your response as a whole number).
25
1
25
2
20
3
40
4
5
0 10
8
0
6
50
9 10
30 65
7
30
8 9 10
0
30 65
Dennis Sport World, a chain of sporting goods stores, sells 360,000 tennis balls per year. The
tennis balls cost Dennis Sport World RM15 per dozen. Annual inventory carrying costs are 20
percent of inventory price. The cost of placing and receiving an order are RM72. Assume the
inventory replenishment occurs virtually instantaneously. Based on recent experience, Dennis
Sport World uses 7 days delivery time for planning purposes. (Assume 360 days in a year)
TASKS
a) Calculate the Economic Order Quantity.
b) Calculate the number of orders to be placed.
c) Calculate the total annual inventory costs.
d) Determine the reorder point.
Chapter 14 Solutions
Principles Of Operations Management
Ch. 14 - Ethical Dilemma For many months your prospective...Ch. 14 - What is the difference between a gross...Ch. 14 - Prob. 2DQCh. 14 - What are the similarities between MRP and DRP?Ch. 14 - How does MRP II differ from MRP?Ch. 14 - Which is the best lot-sizing policy for...Ch. 14 - What impact does ignoring carrying cost in the...Ch. 14 - MRP is more than an inventory system; what...Ch. 14 - What are the options for the production planner...Ch. 14 - Master schedules are expressed in three different...
Ch. 14 - What functions of the firm affect an MRP system?...Ch. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - Prob. 14DQCh. 14 - As an approach to inventory management, how does...Ch. 14 - Prob. 16DQCh. 14 - Use the Web or other sources to: a) Find stories...Ch. 14 - Prob. 18DQCh. 14 - Prob. 19DQCh. 14 - You have developed the following simple product...Ch. 14 - You are expected to have the gift bags in Problem...Ch. 14 - Prob. 3PCh. 14 - Your boss at Xiangling Hu Products, Inc., has just...Ch. 14 - The demand for subassembly S is 100 units in week...Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - You are product planner for product A (in Problem...Ch. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Heather Adams, production manager for a Colorado...Ch. 14 - Prob. 19PCh. 14 - Prob. 20PCh. 14 - Prob. 21PCh. 14 - Prob. 22PCh. 14 - Data Table for Problems 14.22 through 14.25 ...Ch. 14 - Develop a POQ solution and calculate total...Ch. 14 - Using your answers for the lot sizes computed in...Ch. 14 - M. de Koster, of Rene Enterprises, has the master...Ch. 14 - Grace Greenberg, production planner for Science...Ch. 14 - Prob. 28PCh. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Courtney Kamauf schedules production of a popular...Ch. 14 - Using the data for the coffee table in Problem...Ch. 14 - Prob. 1CSCh. 14 - Prob. 2CSCh. 14 - Prob. 1.1VCCh. 14 - Prob. 1.2VCCh. 14 - Prob. 1.3VCCh. 14 - Prob. 2.1VCCh. 14 - Prob. 2.2VCCh. 14 - Prob. 2.3VC
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