## 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.

4-1 Ross Whiteâs

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 companyâs 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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