Using the gross requirements schedule below*, prepare an alternative ordering system that always orders 100 units the week prior to a shortage (a fixed order quantity of 100). What is the cost of this ordering system? D Period 1 2 3 4 5 6 7 Gross requirements 35 30 40 0 10 40 30 8 9 10 0 30 55 *Holding cost = $1/unit/week; setup cost = $100; lead time = 1 week; beginning inventory = 35 units. Prepare a net requirements plan (enter your responses as whole numbers). The holding cost of this ordering system is $ The setup cost of this ordering system is $ The total cost of this ordering system is $ Period Gross requirements On-hand at beginning of period On-hand at end of period Net requirements Order receipt Order release (enter your response as a whole number). (enter your response as a whole number). (enter your response as a whole number). 35 1 2 3 35 30 40 4 0 5 10 6 40 7 30 8 9 10 0 30 55

Using the gross requirements schedule below, prepare an alternative ordering system that always orders 100 units the week prior to a shortage (a fixed order quantity of 100). What is the cost of this ordering system? D Period 1 2 3 4 5 6 7 Gross requirements 35 30 40 0 10 40 30 8 9 10 0 30 55 Holding cost = $1/unit/week; setup cost = $100; lead time = 1 week; beginning inventory = 35 units. Prepare a net requirements plan (enter your responses as whole numbers). The holding cost of this ordering system is $ The setup cost of this ordering system is $ The total cost of this ordering system is $ Period Gross requirements On-hand at beginning of period On-hand at end of period Net requirements Order receipt Order release (enter your response as a whole number). (enter your response as a whole number). (enter your response as a whole number). 35 1 2 3 35 30 40 4 0 5 10 6 40 7 30 8 9 10 0 30 55

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

See similar textbooks

Similar questions

Reorder Point Ordering: Average demand per day () is 25 units, with a std. dev. of (od) 15 units. Lead time (LT) is 49 days. Find demand during lead time (DDL), safety stock (SS) and reorder point (ROP ) for 4-sigma (z = 4). DDL= 500 units, SS = 1225 units, ROP = 1645 units DDL= 1,645 units, SS=420 units, ROP = 1225 units DDL= 1,225 units, SS = 420 units, ROP = 1645 units DDL= 0 units, SS = 1225 units, ROP = 420 units DDL= 420 units, SS = 1645 units, ROP = 420 units
Reorder Point Ordering: Average daily demand ( d) is 5 units with a std. dev. (od) of 1 unit. Average lead time ( LT) is 24 days with a std. dev. (OLT) of 1 day. The inventory manager wants to operate within 3 std. deviations (z = 3). Find the reorder point (ROP) and safety stock (S). ROP=141, SS=120 ROP=141, SS=21 ROP=120, SS=21 ROP=21, SS=141
Annual demand (D) for an item is 1,000 units. Ordering Cost (S) is $100 per order. Holding cost (H) is $5 per unit per year. Find economic order quantity (Q*). 400 units 141.4 units 200 units 40,000 units 100 units
Economic Order Quantity and Reorder PointFind the economic order quantity and the reorder point, givenAnnual demand ( D )= 1, 000 unitsAverage daily demand ( d¯ ) = 1, 000 ∕365ordering cost ( S ) = $5 per orde rHolding cost ( H ) = $1.25 per unit per yearLead time ( L ) = 5 daysCost per unit ( C ) =$12.50What quantity should be ordered?
DETERMINING INVENTORY MODELS FSYHILD is a manufacturing company of made to order face shield. It is producing products at a constant rate with a requirement of 5,500 face shields per quarter throughout the year. If ordering costs are P35.00 per order, unit cost is P10.00 per face shield, and annual inventory holding cost are charged at 30% of the units cost. A. What is the EOQ for this component? B. What is the expected time between orders? C. What are the total annual inventory and holding cost associated with your EOQ recommendation? D. Assuming a lead time of 5 days, what is the reorder point? E. What is the total cost if the management decides to increase the demand by 75%?
Ezrah is attempting to perform an inventory analysis on one of her most popular beauty products, the Heavenly perfume Annual demand for this product is 10,000 units with carrying costs of P50 per unit per year . ordering costs for her company typically run P100 per order Lead time averages 10 days (Assume 250 working days) What is the economic order quantity?
Walrus Company has the following information available concerning one of its inventory items: Cost of placing an order $30.00 Unit carrying cost per year $3.00 Annual unit demand 6,625 Safety stock 125 Average daily demand 25 Normal lead time in days 10 If there is a delay in shipping the item, approximately how many days can be covered by the safety stock? a.5 days b.110 days c.26 days d.31 days
For fixed order quantity inventory system, which of the following costs is increased when order size (Q) is increased? a) Setup cost b) Ordering cost c) Start-up quality cost d) Insurance cost e) Receiving inspection cost
example 15.1 Economic Order Quantity and Reorder Point Find the eco- nomic order quantity and the reorder point, given Annual demand (D) = 1,000 units Average daily demand (d) = 1,000/365 Ordering cost (S)= $5 per order Holding cost (H) = $1.25 per unit per year Lead time (L) = 5 days Cost per unit (C) = $12.50 %3D %3D %3D What quantity should be ordered?
• The weekly demand for a product is 770 units. The standard deviation of daily demand is 10 units. The firm reviews its inventory every 28 days. Each order for the product arrives 9 days after placement. At the time of review, there are 10 units backorder. If 95 percent of all demand is to be satisfied from items in stock: a) How many units should be the safety stock? b) What's the product's inventory status? c) How many units should be ordered for this period?
How does the Wilson approach help in optimizing inventory levels? Provide a step-by-step explanation of the Wilson EOQ (Economic Order Quantity) model.
A manufacturing company produces two products X and Y. Each product X requires one A and two Bs. Each B requires one C and one D. Each product Y requires 1 C and 4Ds. Table Q5A shows data from the inventory records of components. Table Q5A Data category A B C D Lot - sizing rule Fixed order quantity = 250 Lot for lot Lot for lot Fixed order quantity = 1000 Lead time 3 weeks 2 weeks 1 week 2 weeks Beginning inventory 70 0 200 800 The MPS for products X and Y is given in Table Q5B. The on-hand inventories are as follows: X = 100, Y = 30. The only scheduled receipts are 250 units of X in period 2.The lead times are as follows: X = 2 weeks, Y = 3 weeks. The chase strategy is used for both products. Table Q5B Demand in period Product SS 1 2 3 4 5 6 7 8 X 50 300 200 250 Y 30 400 Required: a) Draw a product structure tree for each product. b) Develop…