# the results in a Microsoft Word document

## the results in a Microsoft Word document

Module Problems

Complete the following
problems and submit the results in a Microsoft Word document. Explain in
details how you got to our answers and provide Excel File for calculations as
well.

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4-1 Ross Whiteâs
machine shop uses 2,500 brackets during the course of a year, and this usage is
relatively constant throughout the year.
These brackets are purchased from a supplier 100 miles away for \$19 each,
and the lead time is 4 days. The holding
cost per bracket per year is 10% of the unit cost and the ordering cost per order
is \$25. There are 250 working days per year.

a. What is the EOQ?
b. Given the EOQ, what is the average
inventory?
c. What is the annual inventory
holding cost?
d. In minimizing cost, how many
orders would be made each year?
e. What would be the annual ordering
cost?
f. Given the EOQ, what is the total
annual inventory cost (including purchase cost)?
g. What is the time between orders?
h. What is the ROP?

4-2 Ralph
Janaro simply does not have time to analyze all the items in his companyâs inventory. As a young manager, he has more important things
to do. The following is a table of six items
in inventory along with the unit cost and the demand in units.

IDENTIFICATION CODE

UNIT COST
(\$)

DEMAND
IN UNITS

XX1

5.84

1,200

B66

5.40

1,110

3CPO

1.12

896

33CP

74.54

988

R2D2

4.80

1,257

RMS

2.08

961

a. Find the total amount spent
on each item during the year. What is
the total investment for all these?
b. Find the percentage of the
total investment in inventory that is spent on each item.
c. Based on the percentages in part
(b), which item(s) would be classified in categories A, B, and C using ABC analysis?
d. Which item(s) should Ralph most
carefully control using quantitative techniques?
e. How low would the demand for
33CP have to before it change to a different category?

4-3 The marginal loss on Washington Reds, a brand of apples
from the state of Washington, is \$40 per case.
The marginal profit is \$15 per case.
During the past year, the mean sales of Washington Reds in cases was 41,000
cases, and the standard deviation was 4,480.
How many cases of Washington Reds should be brought to market? Assume that sales follow a normal distribution.

4-4 The Webster Manufacturing Company produces
a popular type of serving cart. This product,
the SL72, is made from the following parts: 1 unit of Part A, 1 unit of Part B,
and 1 unit of Subassembly C. Each subassembly
C is made up of 2 units of Part D, 4 units of Part E, and 3 units of Part F.
a. Develop a material structure tree for this. The lead time for each of the parts in the SL72
is one week, except for Part B and Part E, which have a lead time of two weeks.
b. Develop a net materials requirements plan for an order
of 800 SL72s. Assume that currently there
are no parts in inventory.
c.
Develop a net material
requirements plan assuming that there are currently 150 units of Part A, 60 units
of Part B, 40 units of Subassembly C, and 100 units of Part F currently in inventory.

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