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Chapter 4: Q7OQ. (page 580)
What is the process used to ensure that all of the needs for a particular item are calculated at the same time in the MRP process?
Low-level coding
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What are the advantages and disadvantages of aggregating demand from a forecasting view? Are there other things that should be considered when going from multiple DC鈥檚 to one DC?
Daily demand for a product is 60 units with a standard deviation of 10 units. The review period is 10 days, and the lead time is 2 days. At the time of review, there are 100 units in stock. If 98 percent service probability is desired, how many units should be ordered?
Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Last year | ||||||||||||
This year |
Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 130 units. The following is the BOM in indented form:
ITEMS | DESCRIPTION | USAGE |
X | Bracket assembly | 1 |
A | Wall board | 4 |
B | Hanger sub-assembly | 2 |
D | Hanger casting | 3 |
E | Ceramic knob | 1 |
C | Rivet Head screw | 3 |
F | Metal tong | 4 |
G | Plastic cap | 2 |
Below is a table indicating current inventory levels:
ITEMS | X | A | B | C | D | E | F | G |
Inventory | 25 | 16 | 60 | 20 | 180 | 160 | 1000 | 100 |
a.Using Excel, create the MRP using the information provided.
SY Manufacturers (SYM) is producing T-shirts in three colors: red, blue, and white. The monthly demand for each color is 3,000 units. Each shirt requires 0.5 pounds of raw cotton that is imported from Luft-Geshfet-Textile (LGT) Company in Brazil. The purchasing price per pound is \(2.50 (paid only when the cotton arrives at SYM鈥檚 facilities) and the transportation cost by sea is \)0.20 per pound. The traveling time from LGT鈥檚 facility in Brazil to the SYM facility in the United States is two weeks. The cost of placing a cotton order, by SYM, is $100 and the annual interest rate that SYM is facing is 20 percent.
a. What is the optimal order quantity of cotton?
b. How frequently should the company order cotton?
c. Assuming that the first order is needed on April 1, when should SYM place the order?
d. How many orders will SYM place during the next year?
e. What is the resulting annual holding cost?
f. What does the resulting annual ordering cost?
g. If the annual interest cost is only 5 percent, how will it affect the annual number of orders, the optimal batch size, and the average inventory? (You are not expected to provide a numerical answer to this question. Just describe the direction of the change and explain your answer.)
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