With the aid of appropriate load shapes ,discuss mechanisms that facilitate demand side management initiatives.
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With the aid of appropriate load shapes ,discuss mechanisms that facilitate demand side management initiatives.
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- Explain in what ways do independent demand inventories differ from dependent demand inventories ?What are the benefits of leveling aggregate demand by having a portfo-lio of products that create 365-day demand?Robotic Pet Products uses overtime, inventory, and subcon-tracting to absorb fluctuations in demand. As expected, de-mand in the fourth quarter during the holiday season isparticularly high, followed by first quarter demand forcustomers purchasing accessories for their R-pets. Giventhe demand and available capacities shown below, design aproduction plan that will satisfy demand at minimum cost.Regular production cost per unit $10Overtime production cost per unit $15Subcontracting cost per unit $20Inventory holding cost per unit per period $3Beginning inventory 100 Regular Overtime SubcontractingQuarter Demand Capacity Capacity Capacity1 1000 1000 100 5002 800 1000 100 5003 600 1000 100 5004 2600 1000 100 500
- Develop a EOQ solution and calculate total relevant costs for the gross requirements in the following table". Period 1 2 3 30 Gross requirements 20 "Holding cost-$1.50/unit/week; setup cost What is the average demand per week? (enter your responses with 2 decimal places): 1 Calculate Economic Order Quantity (EOQ) (enter your responses as whole numbers) Calculate the number of periods for POQ (enter your responses as whole numbers) Develop a POQ solution (enter your responses as whole numbers) Setup cost for 12 weeks is $ Carrying cost for 12 weeks is Period Gross requirements Scheduled receipt Projected On-hand Not Requirements Planned Order receipt Planned Order release (enter your response as a whole number) (enter your response as a whole number). The total cost is $(enter your response as a whole number) 40 1 20 2 4 5 6 7 8 40 20 30 $150; lead time 1 week; beginning inventory-40- 3 4 30 5 6 7 40 20 30 9 10 11 12 20 20 50 8 9 10 11 20 20 12 50The Friendly Greetings greeting card company outsources printing to a nearby printing shop, which charges a $1200 fixed charge to start producing a design of card, then $0.30 for each card produced. The printing shop turns around production orders quite quickly, so lead time can be considered negligible. Demand for birthday cards of a certain classic design has long been at a constant and steady rate of 25,000 cards per year. Friendly Greetings stores cards in its own warehouse. The company estimates holding costs to be 5 cents per card per year, including variable warehousing costs and the opportunity cost of capital. The company’s current ordering policy is not necessarily optimal. They place an order for 15,000 cards when their stock of cards approaches zero. Now suppose that the print shop requires a 2 week lead time to turn around a production order. What is the optimal reorder point for the card? (You may assume 50 weeks in a year.)The Friendly Greetings greeting card company outsources printing to a nearby printing shop, which charges a $1200 fixed charge to start producing a design of card, then $0.30 for each card produced. The printing shop turns around production orders quite quickly, so lead time can be considered negligible. Demand for birthday cards of a certain classic design has long been at a constant and steady rate of 25,000 cards per year. Friendly Greetings stores cards in its own warehouse. The company estimates holding costs to be 5 cents per card per year, including variable warehousing costs and the opportunity cost of capital. Given their current ordering policy, what is their average annual holding cost for this particular design?
- Describe the importance of inventory management as itrelates to the Farmers Restaurant?Develop a EOQ solution and calculate total relevant costs for the gross requirements in the following table*. Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20 40 30 20 20 10 40 50 *Holding cost=$1.50/unit/week; setup cost=$150; lead time=1 week; beginning inventory=40. What is the average demand per week? (enter your responses with 2 decimal places): enter your response here Calculate Economic Order Quantity (EOQ) (enter your responses as whole numbers): enter your response here Calculate the number of periods for POQ (enter your responses as whole numbers): enter your response here Develop a POQ solution (enter your responses as whole numbers). Period 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 20…If your average daily demand is 60 units, and the replenishment cycle (lead time) is 5 days; with 60 units of safety sock, what is the re-order point?