3325module2
1a The XYZ Inc. buys mother boards for its computer assembly. The following information is available:
Annual Demand, units/year
10000
Order Cost, $/per order
$20
Carrying Costs (annual), as of unit cost
0.20
Unit Costs, $/per unit
$50
Lead Time (days)
5
Safety Stock, units
20
Days of a Calendar Year
250
Determine:
a. EOQ= √2DO/IC
D=annual demand
O=order cost or set up cost /per
I=inventory carrying cost as % of unit cost
C=unit cost
b. Total Orders a Year:
c. Maximum Inventory:
d. Minimum Inventory:
e. Average Inventory:
f. Reorder Point:
g. Annual Inventory Carrying Costs:
h. Annual Inventory Carrying Costs & Order Costs:
1b The XYZ Inc. decides to make mother board for its computer
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h. Planned order release for component D in period 6 is known.
i. the gross requirement for component D in period 7 comes from gross requirement for component C in period 7.
3 Product A is made of 2 units of Part B and 3 units of Part C. Part B is made of 2 units of Part C and 4 units of Part D. Part D is made of 3 units of Part C. Draw a BOM chart and make your MRP in the following tables.
On Hand Inventory and Lead Time for each component are shown in the following table:
Item
Quantity (in units)
Lead Time (periods
Product A
20
2
Part B
30
2
Part C
200
1
Part D
30
3
The Master Production Schedule requirements for Product A Assembler are as follows:
Period
MPS for Product A:
1
2
3
4
5
6
7
8
9
10
Quantity (in units)
0
0
0
0
0
0
0
0
40
50
A: Gross Requirement
On Hand Inventory
Net Requirement
Planned Order Receipts
Planned Order Releases
Lead Time:
Part B: Gross Requirement
On Hand Inventory
Net Requirement
Planned Order Receipts
Planned Order Releases
Lead Time:
Part C: Gross Requirement
On Hand Inventory
Net Requirement
Planned Order Receipts
Planned Order Releases
Lead Time:
Part D: Gross Requirement
On Hand Inventory
Net Requirement
Planned Order Receipts
Planned Order Releases
Lead Time:
3 Product A is made of 2 units of Part B and
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From my research of the Lodge Bistro I have found the following problems within the company.
It was barred by the United States because it refused to honor the war debt incurred by the Tsar's government. Also called the Pact of Paris.
Question 5: Temporarily, ignore your work on questions 2, 3, and 4. Low’s luck at the race track is over; he now must borrow money to finance his inventory of nails. Looking at the situation outlined in question 1, assume that the wholesale cost of nails is $40 per keg and that Low must pay interest at the rate of 1.5% per month on the unsold inventory. What is his new EOQ?
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Supplier A: EOQ = Square root of (2 x 1500 x $1,000) = S.R. of 3,000,000 = 209
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