QUESTION 1
How does MRP relate to CIM? Hint: In addition to the reading assignment refer to Appendix B in the textbook. 75 Words
QUESTION 2
Holding cost is handled differently in MRP and EOQ models. Describe those differences. 75 Words
QUESTION 3
If you are in the business of making roller skates, would the wheels needed be dependent or independent on the production levels? Would the demand for roller skates be dependent or independent? 75 Words
QUESTION 4
Product A is an end item and is made from two units of B and four of C. B is made of three units of D and two of E. C is made of two units of F and two of E. A has a lead-time of one week. B, C, and E have lead times of two weeks, and D and F have lead times of three weeks. Show the bill of materials (product tree structure). 75 words
QUESTION 5
Dunstreet’s Department Store would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 5,000 per year. The store is open 365 days per year. Every two weeks inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. Standard deviation of demand for the sheets is five per day. There are currently 150 sheets on hand. How many sheets should you order? 75 words
QUESTION 6
The question of flexibility within a master production schedule depends on several factors. Unless some operating rules are established and adhered to, the system could become chaotic. What techniques does management use to maintain a reasonably controlled flow through the production system? 75 words
QUESTION 7
Assume you are building custom motorcycles. All custom bikes use some standard parts. Part number HD-60 is stocked in your inventory of component parts. Each year you use about 2,000 HD-60 components at a cost of $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for HD-60 components, it costs $10.
(a) How many items of HD-60 should be ordered at a time?
(b) What are the annual costs of ordering HD-60 components?
(c) What is the annual cost of storing HD-60 components?
75 words in length.
QUESTION 8
You have a product in which inventory is taken frequently, rather than once or twice per year. Under what cases could your inventory of this product be computerized?
75 words in length.