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Chapter 4: Q11OQ_a. (page 581)

Question: Assume that Product Z is made of two units of A and four units of B. A is made of three units of C and four of D. D is made of two units of E.

Lead times for purchase or fabrication of each unit to final assembly are: Z takes two weeks; A, B, C, and D take one week each; and E takes three weeks.

Fifty units are required in Period 10. (Assume that there is currently no inventory on hand of any of these items.)

a.Show the bill-of-materials (product structure tree

Short Answer

Expert verified

Answer:

Purchasing is an activity where a company or organization acquires products and commodities to achieve its objectives.

Step by step solution

01

Step 1: Bill-of-materials (BOM)

A bill of materials(BOM)is a detailed description of the raw resources, parts, and procedures needed to build, produce, and fix a service or product.

02

  Product structure tree

The diagram is shown below:

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Most popular questions from this chapter

Palin鈥檚 Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage the inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level).

Annual demand

3,000 mufflers

Ordering cost

\(50 per order

The standard deviation of daily demand

6 mufflers per working day

Service probability

90%

Item cost

\)30 per muffler

Lead time

2 working days

Annual holding cost

25% of the item value

Working days

300 per year

Review period

15 working days

a. What is the optimal target level (order-up-to level)?

b. If the service probability requirement is 95 percent, the optimal target level [your answer in part (a)] will (select one):

I. Increase.

II. Decrease.

III. Stay the same.

Sales data for two years are as follows. Data are aggregated with two months of sales in each 鈥減eriod.鈥�

Months

Sales

闯补苍耻补谤测鈥揊别产谤耻补谤测

109

惭补谤肠丑鈥揂辫谤颈濒

104

惭补测鈥揓耻苍别

150

闯耻濒测鈥揂耻驳耻蝉迟

170

厂别辫迟别尘产别谤鈥揙肠迟辞产别谤

120

狈辞惫别尘产别谤鈥揇别肠别尘产别谤

100

Months

Sales

闯补苍耻补谤测鈥揊别产谤耻补谤测

115

惭补谤肠丑鈥揂辫谤颈濒

112

惭补测鈥揓耻苍别

159

闯耻濒测鈥揂耻驳耻蝉迟

182

厂别辫迟别尘产别谤鈥揙肠迟辞产别谤

126

狈辞惫别尘产别谤鈥揇别肠别尘产别谤

106

a. Plot the data.

b. Fit a simple linear regression model to the sales data.

c. In addition to the regression model, determine multiplicative seasonal index factors. A full cycle is assumed to be a full year.

d. Using the results from parts (b) and (c), prepare a forecast for the next year.

What is the term for a computer program often used to facilitate database queries that are not part of a standard ERP system?

Question: What part of SAP gives users personalized access to a range of information, applications, and services supported by the system?

Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year.

Item cost
\(10.00
The standard deviation of weekly demand
25 per week
Order cost
\)250.00
Lead time
1 week
Annual holding cost (%)
\(33% of the item cost
Service probability
95%
Annual demand
25,750

Average demand
515 per week

a. State the order quantity and reorder point.

b. Determine the annual holding and order costs.

c. If a price break of \)50 per order was offered for purchase quantities of over 2,000, would you take advantage of it? How much would you save annually?
See all solutions

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