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Match the industry type to the expected benefits from an MRP system as High, Medium, or Low.

Short Answer

Expert verified
  1. High
  2. High
  3. Low
  4. Low
  5. High
  6. Medium

Step by step solution

01

Identifying whether assemble-to-stock is high, medium, or low

The manufacturing process involves lots of processes such as different types of raw materials, components, and sub-assemblies. In this, the requirements are distributed at various levels but with optimum utilization of resources with the commitment to delivery. The cost included is kepthigh.

02

Identifying whether assemble-to-order is high, medium, or low

Mostly it is considered that the requirement of parts is more dependent on customer specifications. The beginning level of manufacturing is done from the customer need at various levels and all these, at last, conclude highbenefit in MRP.

03

Identifying whether make-to-stock is high, medium, or low

Manufacturing of standard products such as bolts and nuts involves steel, rods, etc., and making them into end products results in high demand, and the benefits of MRP are quite low.

04

Identifying whether make-to-order is high, medium, or low

In this, the manufacturing is related to storing the liquid materials such as tanks for petroleum products which are only prepared on orders. This involves buying huge sheets, which ultimately results in low benefits of MRP.

05

Identifying whether engineer-to-order is high, medium, or low

Usually, the production of ships and aircraft is carried out on customer orders. It involves the high purchase of raw materials such as engines, gearboxes, and many more, which conclude highbenefits of MRP.

06

Identifying whether the process is high, medium, or low

Typically, manufacturing commodities like plastic, aluminum, steel, cement, etc., involves the purchase of standard raw material, resulting in mediumMRP.

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Most popular questions from this chapter

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. The demand for white percale sheets is 5,000 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. The standard deviation of demand for the sheets is five per day. There are currently 150 sheets on hand. How many sheets should you order?

Following are the process flow sequences for three products: A, B, and C. There are two bottleneck operations—on the first leg, and the fourth leg—marked with an X. Boxes represent processes, which may be either machine or manual. Suggest the location of the drum, buffer, and ropes.

CU, Incorporated, (CUI) produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price-break and other data for the problem:

Price of copper

\(0.82 per pound up to 2,499 pounds

\)0.81 per pound for orders between 2,500 and 5,000 pounds \(0.80 per pound for orders greater than 5,000 pounds

Annual demand

50,000 pounds per year

Holding cost

20 percent per unit per year of the price of the copper

Ordering cost

\)30

Which quantity should be ordered?

Your manager is trying to determine what forecasting method to use. Based upon the following historical data, calculate the following forecast and specify what procedure you would utilize.

Month

Actual demand

1

62

2

65

3

67

4

68

5

71

6

73

7

76

8

78

9

78

10

80

11

84

12

85

a. Calculate the simple three-month moving average forecast for periods 4–12.

b. Calculate the weighted three-month moving average using weights of 0.50, 0.30, and 0.20 for periods 4–12.

c. Calculate the single exponential smoothing forecast for periods 2–12 using an initial (F1) of 61 and anαof 0.30.

d. Calculate the exponential smoothing with trend component forecast for periods 2– 12 using an initial trend forecast (T1) of 1.8, an initial exponential smoothing forecast (F1) of 60, and αof 0.30 andδof 0.30.

e. Calculate the mean absolute deviation (MAD) for the forecasts made by each technique in periods 4–12. Which forecasting method do you prefer?

Sally’s Silk Screening produces specialty T-shirts that are primarily sold at special events. She is trying to decide how many to produce for an upcoming event. During the event, Sally can sell T-shirts for \(20 apiece. However, when the event ends, any unsold T-shirts are sold for \)4 apiece. It costs Sally $8 to make a specialty T-shirt. Sally’s estimate of demand is the following:

Demand

Probability

300

.05

400

.10

500

.40

600

.30

700

.10

800

.05

a. What is the service rate (or optimal fractile)?

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