Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 8.2, Problem 16P
Summary Introduction
Interpretation:Compare the various lot sizing methods for their positive and negative characteristics.
Concept Introduction:Determination of the lot size to be ordered for procurement or production is one of the key outputs of any MRP system. This utilizes various lot-sizing techniques each of which has unique characteristics. Every user, therefore, has to decide which technique to use for optimum results in his/her situation.
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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
Demand forecast
Lot size
Standard processing time
Standard setup time
Touring
4,000 units/year
130 units
0.20 hour/unit
2 hours/lot
Mountain
10,000 units/year
110 units
0.50 hour/unit
3 hours/lot
The shop currently works 8 hours a day, 5 days a week, 48 weeks a year. It operates five workstations, each producing
one bicycle in the time shown in the table. The shop maintains a 15 percent capacity cushion. How many workstations
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.)
Electro Fans has just received an order for one thousand 20Ëť fans due in week 7. Each fan consists of a housing assembly, two grills and a fan assembly. The housing assembly consists of a frame, two supports and a handle. The following table gives lead times, on-hand inventory, and scheduled receipts.
Table 1.1:Â Lead time and quantity on hand
Item
Lead Time
Qty on hand
Lot size#
Scheduled receipt
20Ëť Fan
 Housing
     Frame
      Supports (2)
      Handle
 Grills (2)
 Fan Assembly    Â
Â
1
1
2
1
1
2
3
Â
80
90
-
50
400
200*
150
Â
-
-
-
100
400
450
-
Â
Â
Â
Â
Â
Â
Â
50 fan assembly in week 2
Â
* In week 3 it was found that 50% of the on hand inventory of the grills was damaged.
# Items without any lot size given should be considered as lot-for-lot.
Â
(i) Construct a product structure.
(ii) Construct a time-phased product structure.
(iii) Prepare a net requirement plan.
Discuss the role of data analytics in optimizing inventory within the Wilson approach.
Chapter 8 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 8.1 - Prob. 1PCh. 8.1 - Prob. 2PCh. 8.1 - Prob. 3PCh. 8.1 - Prob. 4PCh. 8.1 - Prob. 5PCh. 8.1 - Prob. 6PCh. 8.1 - Prob. 7PCh. 8.1 - Prob. 8PCh. 8.1 - Prob. 9PCh. 8.2 - Prob. 10P
Ch. 8.2 - Prob. 11PCh. 8.2 - Prob. 12PCh. 8.2 - Prob. 13PCh. 8.2 - Prob. 14PCh. 8.2 - Prob. 15PCh. 8.2 - Prob. 16PCh. 8.2 - Prob. 17PCh. 8.2 - Prob. 18PCh. 8.2 - Prob. 19PCh. 8.2 - Prob. 20PCh. 8.2 - Prob. 21PCh. 8.2 - Prob. 22PCh. 8.3 - Prob. 23PCh. 8.3 - Prob. 24PCh. 8.3 - Prob. 25PCh. 8.4 - Prob. 26PCh. 8.4 - Prob. 27PCh. 8.4 - Prob. 28PCh. 8.4 - Prob. 29PCh. 8.5 - Prob. 30PCh. 8.5 - Prob. 31PCh. 8.5 - Prob. 32PCh. 8.5 - Prob. 33PCh. 8.5 - Prob. 34PCh. 8.6 - Prob. 35PCh. 8.6 - Prob. 36PCh. 8.6 - Prob. 37PCh. 8.6 - Prob. 38PCh. 8.6 - Prob. 39PCh. 8.6 - Prob. 40PCh. 8 - Prob. 41APCh. 8 - Prob. 42APCh. 8 - Prob. 43APCh. 8 - Prob. 44APCh. 8 - Prob. 45APCh. 8 - Prob. 46APCh. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51AP
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