Assignment:
Q1. What is the Master Production Schedule and what does it provide for the MRP procedure?
Q2. What is nervousness in an MRP system? How is it caused? Why is it bad? What are some things that can be done to prevent it?
Q3. Every year, the local Fire house sells calendars that has pictures of the "Fireman of the Month" and some local coupons on the back page as a fundraiser.They use the proceeds to support the local Boys and Girls Club and are a big hit in the community.The once-a-year order for each year's calendar arrives in September.From past experience, the September-to-July demand for these calendars can be approximated by a normal distribution with a mean of 2500 and a standard deviation of 400.The calendars cost $4.00 each to print and are sold for $10.00 each
A. If the firemen throw out all unsold calendars at the end of July (i.e., salvage value is zero), how many calendars should be ordered?
B. If the firemen reduce the price of the calendars to $3.00 at the end of July and can sell all surplus calendars at this price, how many calendars should be ordered?
C. Comment on the difference in the 2 numbers and why you think they might be different.
Q4. Monthly demand for an inventory item is normally distributed with a mean of 20 units and a standard deviation of 2.Demand follows this distribution every month, 12 months a year.When inventory reaches a predetermined level, an order for replenishment is placed.The fixed ordering cost is $60 per order.The items cost $4 per unit and the annual inventory holding cost is 25 percent of the average value of the inventory.The replenishment lead time is exactly 4 months.
A. Determine the EOQ.
B. Determine the reorder point and safety stock to achieve a 90 percent service level. (Recall that the reorder point = Demand During Lead Time + Safety Stock.Also, remember that the standard deviation of demand during lead time is
C. (Optional - 10 Bonus Points) Assume that a 10 percent "all units" discount will be given if the order quantity is greater than or equal to 100 units.What order quantity would you recommend with this offer?
Q5. John Jacobs recently invented a new holder for Keurig Coffee pods and it is selling very well.It is scheduled to be featured in 5 weeks on Good Morning America's hot products and he expects sales to remain strong for several weeks afterward.John is very excited about this opportunity and wants to make sure that he has enough product ready for the promotion.He has worked with his advertiser and produced the expected weekly demand for the next 12 weeks below.
Each holder requires 1 base, 4 legs, and 4 screws. The ordering specifics for each are as follows:
Final Product (Holder) - Lead Time 1 week, Lot for Lot, Initial Inventory =75
Base - Lead Time 4 weeks, Fixed Order Quantity of 100, Safety Stock of 50, Initial Inventory = 500
Legs - Lead Time 2 weeks, Lot for Lot, Safety Stock of 200, Initial Inventory = 200
Screws - Lead Time 1 week, Fixed Order Period of 2 weeks, Initial Inventory = 1000
Generate the MRP for the Final Product, Base, Legs, and Screws given the following demand for the holders. Denote any expedited orders with an * by them.
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Week
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0
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1
|
2
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3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
11
|
12
|
|
Demand
|
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75
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75
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100
|
300
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1200
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900
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850
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800
|
700
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750
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600
|
550
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Provide complete and step by step solution for the question and show calculations and use formulas.