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Chapter: 3 -Problem: 9 >> Using the scheduled receipts, calculate the ATP. There are zero units on hand. Transcribed Image Text: Week Customer Orders MPS ATP 1 10 50 2 3 10 4 5 60 50 6 16 7 8 9 10 50 10
Answer Preview: Week Customer or…

, Chapter: 6 -Problem: 4 >> An order for 50 of a product is processed on work centers A and B. The setup time on A is 45 minutes, and run time is 5 minutes per piece. The setup time on B is 30 minutes, and the run time is 4 minutes per piece. Wait time between the two operations is 8 hours. The move time between A and B is 60 minutes. Wait time after operation B is 8 hours, and the move time into stores is 2 hours. Queue at
Answer Preview: Queue at work center A = 40 60 = 2400 minutes Work center A operatio…

, Chapter: 2 -Problem: 7 >> What is MRP II?
Answer Preview: MRP II stands for Manufacturing Resource Planning. Manufacturing Resource Pl…

, Chapter: 11 -Problem: 12 >> If the weekly standard deviation is 140 units, what is it if the lead time is 3 weeks?
Answer Preview: Applying this to supply chain, the standard deviation o…

, Chapter: 6 -Problem: 16 >> Complete the following table to determine the run sequence for each of the sequencing rules. Transcribed Image Text: Sequencing Rule Process Arrival Due Operation Due Date Time (days) Date Date EDD ODD SPT Job FCFS 123 A. 5 142 132 124 144 131 131 140 129 D 6. 132 146 135
Answer Preview: Jobs A & B will be on time, and Job C will be la…

, Chapter: 13 -Problem: 1 >> A company normally ships to a customer by rail at a cost of $500 per load. The transit time is 14 days. The goods can be shipped by truck for $700 per load and a transit time of 4 days. If transit inventory cost is $35 per day, what does it cost to ship each way?
Answer Preview: Rail Truck Transportation cost $500 $700 In-transit inventory …

, Chapter: 3 -Problem: 7 >> Where is the resource bill used?
Answer Preview: Resource bill or Bill of resources is a prepared list of resources. Res…

, Chapter: 9 -Problem: 10 >> If the assets are $2,000,000 and liabilities are $1,600,000, what is the owners’ equity?
Answer Preview: Owners' equity = …

, Chapter: 1 -Problem: 12 >> What are the objectives of production? How can these objectives be met?
Answer Preview: PRODUCTION:- Production can be defined as the direction and coordination of firms resources towards …

, Chapter: 4 -Problem: 5 >> What is the relationship between the MPS and the MRP?
Answer Preview: Material Requirements Planning (MRP) is a computer-base…

, Chapter: 12 -Problem: 7 >> a. Which of the following items are within tolerance?b. What is the percent accuracy by item? Transcribed Image Text: Part Shelf Inventory Within Tolerance? Number Count Record Difference % Difference Tolerance 635 A 650 +3% 1205 B 1205 +0% 1350 1500 ±5% +5% D 77 80 +3% 38 40 Total
Answer Preview: a. A, B, and D, are within tolerance. b. Accuracy by item = 3 …

, Chapter: 3 -Problem: 8 >> Given the following data, calculate how many units are available to promise. There are 5 units on hand. Transcribed Image Text: Week Customer Orders MPS ATP 1 21 30 2 3 17 30 4 8 30 5 6 3
Answer Preview: Week Customer …

, Chapter: 11 -Problem: 15 >> Management has stated that it will tolerate one stockout per year. The forecast of annual demand for a particular SKU is 100,000 units, and it is ordered in quantities of 10,000 units. The lead time is 2 weeks. Sales history for the past 10 weeks follows. Calculate:a. Sigma for the demand history time interval.b. Sigma for the lead time interval.c. The service level.d. The safety stock required fo
Answer Preview: a. Average squared deviation = 1,200,000 10 = 120,000 …

, Chapter: 8 -Problem: 6 >> Using exponential smoothing, calculate the forecasts for months 2, 3, 4, 5, and 6. The smoothing constant is 0.2, and the old forecast for month 1 is 245. Transcribed Image Text: Month 1 2 3 ??? 4 5 6 Actual Demand 260 230 225 245 250 Forecast Demand
Answer Preview: Month 1 2 3 4 5 6 …

, Chapter: 14 -Problem: 4 >> Bananas are on sale at the Cross Towne store for 79¢ per pound. They normally sell for 99¢ per pound at your corner store. If round-trip bus fare costs $3.60 to the Cross Towne store, is it worth going? What is the cost equalization point? Discuss other ways of taking advantage of this bargain.
Answer Preview: Corner store: Fixed cost = $0 00,variable cost = $0 99 per pound Cross T…

, Chapter: 2 -Problem: 20 >> What information is needed to develop a make-to-order production plan? How does this differ from that needed for a make-to-stock plan?
Answer Preview: The information is needed to develop a make to order production plan is given below. W…

, Chapter: 13 -Problem: 8 >> A company ships LTL to customers in a market in the Midwest at an average cost of $40 per cwt. It proposes establishing a distribution center in this market. TL shipment costs to the DC would be $20 per cwt., the estimated inventory carrying costs are $5 per cwt., and the local cartage (LTL) cost is estimated at $10 per cwt. If the annual shipped volume is 100,000 cwt., what will the annual saving
Answer Preview: Plant to customer LTL direct = $40/cwt. Plant to customer …

, Chapter: 10 -Problem: 6 >> A company is presently ordering on the basis of an EOQ. The demand is 10,000 units a year, unit cost is $10, ordering cost is $30, and the cost of carrying inventory is 20%. The supplier offers a discount of 3% on orders of 1000 units or more. What will be the saving (loss) of accepting the discount?
Answer Preview: Given Demand D= 10,000 units per year Unit cost p = $ 10 Ordering cost S = $30 …

, Chapter: 16 -Problem: 6 >> If, in problem 16.5, the process is improved so the standard deviation is 0.0035, is the process capable now? In ProblemThe specification for the diameter of a hole is 0.80 inch ±0.020 inch. The standard deviation of the drill press is 0.007 inch. Using Cp, calculate whether the process is capable or not.
Answer Preview: C P = USL LSL/6 = .7…

, Chapter: 3 -Problem: 2 >> What are the key issues in this case? Be sure to classify them as much as possible as symptoms versus core causes. Be sure to keep in mind the constraints as defined by the type of customer and the internal conditions. Once you have analyzed and classified the issues, develop a comprehensive solution for MasterChip that can deal more effectively with their situation. Sally Jackson, production mana
Answer Preview: There are several key issues facing MasterChip Electronics Company. Some of the symptoms of these is…

, Chapter: 11 -Problem: 19 >> A company that manufactures snow shovels has one plant and two distribution centers (DCs). Given the following information for the two DCs, calculate the gross requirements, projected available, and planned order releases for the two DCs and the gross requirements, projected available, and planned order releases for the central warehouse.Distribution Center ATransit Time: 2 weeksOrder Quantity: 50
Answer Preview: Distribution center A Transit time: 2 weeks Order quantity: 500 units Distribution …

, Chapter: 15 -Problem: 36 >> Give an example of a visual management system.
Answer Preview: Perhaps the simplest and most common form of visual management is a whiteboard…

, Chapter: 14 -Problem: 6 >> The Light Company is planning on producing a new type of light shade, the parts for which may be made or bought. If purchased, they will cost $2 per unit. Making the parts on a semiautomatic machine will involve a $5000 fixed cost for tooling and $1.30 per unit variable cost. The alternative is to make the parts on an automatic machine. The tooling costs are $15,000, but the variable cost is reduc
Answer Preview: a. CEP buying/semi. $0 + $2 00x = $5,000 + $1 30x $0 70x = $5,…

, Chapter: 16 -Problem: 10 >> Quality costs fall under two categories. Name each category and think of an example to illustrate the category.
Answer Preview: Quality costs fall under two major categories: Prevention Cost Cost of Poor Quality Prevention Cost: …

, Chapter: 11 -Problem: 21 >> A regional warehouse orders items once a week from a central warehouse. The truck arrives 3 days after the order is placed. The warehouse operates 5 days a week. For a particular brand and size of chicken soup, the demand is fairly steady at 20 cases per day. Safety stock is set at 2 days’ supply.a. What is the target level?b. If the quantity on hand is 90 cases, how many should be ordered?
Answer Preview: D = 20 cases per day L = 3 days R …

, Chapter: 2 -Problem: 1 >> If the opening inventory is 400 units, demand is 900 units, and production is 700 units, what will be the ending inventory? Ending Inventory The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
Answer Preview: Ending inventory = op…

, Chapter: 15 -Problem: 35 >> How does takt time work?
Answer Preview: Takt time is the rate at which you need to complete a product t…

, Chapter: 11 -Problem: 20 >> A firm orders a number of items from a regional warehouse every 2 weeks. Delivery takes 1 week. Average demand is 200 units per week, and safety stock is held at 2 weeks’ supply.a. Calculate the target level.b. If 600 units are on hand, how many should be ordered?
Answer Preview: D = 200 units per week L = 1 week R = 2 …

, Chapter: 2 -Problem: 22 >> What is a resource bill? At what level in the planning hierarchy is it used?
Answer Preview: A bill of rsources (BOR) describes a list of resources, such as labour, needed to complete a s…

, Chapter: 15 -Problem: 6 >> Bill builds benches in a small shop and he plans to operate five 8-hour days per week. Each bench has two ends and a top. It takes 5 minutes to cut and sand each end and 2 minutes to make each top. Assembly requires 8 minutes per bench, and painting requires 5 minutes per bench. Bill has one employee who makes the tops and ends. Bill will do the final assembly and painting. He also plans 1 hour pe
Answer Preview: a. Available capacity for each department = (8hrs-1hr) / day x five days = 35 hrs per week …

, Chapter: 3 -Problem: 15 >> What potential problem might arise if time fences are not used? Why?
Answer Preview: Time Fences Consider the product structure shown in Fig 9. Item A is a master scheduled item and is assembled from B,C, and D. Item D in turn is made from raw material E. The lead times to make or to …

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, Chapter: 3 -Problem: 3 >> Does the MPS work with families of products or with individual items?
Answer Preview: As MPS stands for Master production schedule, It is a plan for the production of indivi…

, Chapter: 11 -Problem: 7 >> For an SKU, the standard deviation of demand during the lead time is 150 units, the annual demand is 10,000 units, and the order quantity is 750 units. Management says it will tolerate only one stockout per year. What safety stock should be carried? What is the average inventory? If the lead time is 2 weeks, what is the order point?
Answer Preview: Orders per year = 10,000 750 = 13 33 Service level = 12 33 13 33 …

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, Chapter: 1 -Problem: 19 >> What are metrics? What are their uses?
Answer Preview: Metrics are measures of quantitative assessment commonly …

, Chapter: 2 -Problem: 13 >> Because of its labor contract, a company must hire enough labor for 100 units of production per week on one shift or 200 units per week on two shifts. It cannot hire, lay off, or assign overtime. During the fourth week, workers will be available from another department to work part or all of an extra shift (up to 100 units). There is a planned shutdown for maintenance in the second week, which wil
Answer Preview: Total production = 300 + 1080 200 = 1180 units Number of weeks avail…

, Chapter: 10 -Problem: 9 >> Calculate the new lot size for the following if K = 5 Transcribed Image Text: Item 1 2 3 Annual Demand 2500 900 121 VAD New Lot Size
Answer Preview: Item 1 2 3 Annua…

, Chapter: 2 -Problem: 2 >> The Williams 3D printer company was experiencing growing pains early in 2015. Jasper Williams had developed his own unique design for making a 3D printer with this relatively new technology that was growing fairly rapidly in interest and in competitors. He had started by using his engineering skills as an individual inventor, but with some borrowed money he was able to set up a small production fa
Answer Preview: Existing and proposed applications As explained in D4 1, Research Space and agents, DiDIY has alread…

, Chapter: 2 -Problem: 11 >> A company wants to develop a level production plan for a family of products. The opening inventory is 100 units, and an increase to 130 units is expected by the end of the plan. The demand for each month is given in what follows. Calculate the total production, daily production, and production and ending inventory for each month. Ending Inventory The ending inventory is th
Answer Preview: a. Total production = 530 + 130 100 = 560 b. Daily production = 560/70 = 8 …

, Chapter: 2 -Problem: 24 >> What does the concept of “green production” mean? How will it potentially impact production planning?
Answer Preview: Basically Green production is a business strategy t…

, Chapter: 1 -Problem: 5 >> Describe the five primary manufacturing strategies. How does each affect delivery lead time?
Answer Preview: Manufacturing strategies: Delivery lead time, the time from receipt of an order to the delivery of the product. All deliveries need to be delivered on time so that order transmittal and preparation is …

, Chapter: 3 -Problem: 14 >> Given the following data, calculate the projected available balance and the planned MPS receipts. The lot size is 200. The demand time fence is 2 weeks. Transcribed Image Text: Week Forecast Customer Orders Projected Available Balance MPS 140 1 80 100 2 80 90 3 80 50 4 70 40
Answer Preview: Week Forecast Customer …

, Chapter: 1 -Problem: 10 >> What is the objective of marketing? What three ways will help it achieve this objective?
Answer Preview: Marketing is a strategy by which any product is evaluated and collection …

, Chapter: 2 -Problem: 25 >> Describe sustainability for production. What are some of the ways that a company can practice sustainability?
Answer Preview: Sustainable production is the production of commodities through economical…

, Chapter: 1 -Problem: 14 >> What is the purpose of materials management?
Answer Preview: The gole of material management is to provide an unbroken cha…

, Chapter: 9 -Problem: 9 >> Given the following data, calculate a level production plan, quarterly ending inventory, and average quarterly inventory. If inventory carrying costs are $3 per unit per quarter, what is the annual carrying cost? Opening and ending inventories are zero. Transcribed Image Text: Forecast Demand Produ
Answer Preview: Forecast demand Production Ending inventory Ave…

, Chapter: 2 -Problem: 1 >> What are the four questions a good planning system must answer?
Answer Preview: The four questions a good pla…

, Chapter: 3 -Problem: 8 >> At what level should master production scheduling take place? a. In a make-to-stock environment? b. In a make-to-order environment? c. In an assemble-to-order environment?
Answer Preview: The Master Production Scheduling (MPS) is required to plan for the items that needs to be manufactur…

, Chapter: 12 -Problem: 5 >> A company wishes to store the following SKUs so there is 100% accessibility. The items are stored on pallets that can be stacked three high.a. How many pallet positions are needed?b. What is the cube utilization?c. If the company bought racking for storing the pallets, how many pallet positions are needed to give 100% accessibility?
Answer Preview: Positions SKU Pallets Required A 13 5 B 4 2 C 10 4 D 13 5 E 14 5 Total 54 21 a. Pallet po…

, Chapter: 2 -Problem: 28 >> What is Hoshin planning?
Answer Preview: Hoshin planning is a business strategy planning developed by Japanese in the '60s and '70s and in …

, Chapter: 16 -Problem: 5 >> The specification for the diameter of a hole is 0.80 inch ±0.020 inch. The standard deviation of the drill press is 0.007 inch. Using Cp, calculate whether the process is capable or not.
Answer Preview: C P = USL LSL/6 = .8…

, Chapter: 3 -Problem: 6 >> What is the purpose of a rough-cut capacity plan?
Answer Preview: Rough Cut Capacity Planning (RCCP) is a long term plan …

, Chapter: 1 -Problem: 2 >> What is value added, and how is it achieved?
Answer Preview: Value added- It is a conversion process (manuf…

, Chapter: 4 -Problem: 6 >> Why is a computer necessary in an MRP system?
Answer Preview: Material requirements planning (MRP) is a computer-bas…

, Chapter: 2 -Problem: 14 >> Describe each of the four basic strategies used in developing a production plan. What are the advantages and disadvantages of each?
Answer Preview: The use of different strategies in production plan is of great significance. Utilizing specific strategies within production plan can boost efficiency, reduce waste, reduce cost and ultimately improve …

, Chapter: 15 -Problem: 31 >> Where does a kanban system work best?
Answer Preview: Kaban system work best within a factor…

, Chapter: 1 -Problem: 4 >> What are an order qualifier and an order winner?
Answer Preview: Order winners are the competitive advantages such as quality, delivery speed, reliability, product design, flexibility, and image that cause a firm's …

, Chapter: 1 -Problem: 5 >> Amalgamated Fenderdenter’s sales are $10 million. The company spends $3.5 million for purchase of direct materials and $2.5 million for direct labor; overhead is $3.5 million and profit is $500,000. Direct labor and direct material vary directly with sales, but overhead does not. The company wants to double its profit.a. By how much should the firm increase annual sales?b. By how much should the f
Answer Preview: Using $1 million as the units: As a % of sales Sales $10 0 100% Direct material $3 5 35% D…

, Chapter: 12 -Problem: 9 >> A company does an ABC analysis of its inventory and calculates that out of 5000 items, 22% can be classified as A items, 33% as B items, and the remainder as C items. A decision is made that A items are to be cycle counted once a month, B items every 3 months, and C items twice a year. Calculate the total counts and the counts per day by classification. The company works 5 days per week and 50 wee
Answer Preview: Classification A B Number of items 1100 1650 225…

, Chapter: 16 -Problem: 8 >> A company fills plastic bottles with 10 ounces of shampoo. The tolerance is ±0.1 ounce. The process has a standard deviation of 0.02 ounce. For the following situations, calculate the Cpk and evaluate the process capability.a. A sample has an average of quantity of 9.95 ounces.b. A sample has an average of quantity of 9.98 ounces.c. A sample has an average of quantity of 10.04 ounces.
Answer Preview: a. Since the lower C pk is less than 1, the process is …

, Chapter: 8 -Problem: 3 >> Monthly demand over the past 10 months is given in what follows. a. Graph the demand. b. What is your best guess for the demand for month 11? c. Using a three-month moving average, calculate the forecasts for months 4, 5, 6, 7, 8, 9, 10, and 11. Transcribed Image Text: Month 1 2 3 ??? 4 5 6 7 8 9 1
Answer Preview: Month 1 2 3 4 5 6 7 8 9 …

, Chapter: 16 -Problem: 10 >> A pallet manufacturer has measured the output of a board cutting operation. The boards have a specification of 24 inches ±0.5 inch. A sample of the boards is shown below. Calculate the capability of the board cutting operation. What suggestions would you give to the operator?24.0 24.1 24.2 23.8 24.3 23.9 24.0 24.123.8 24.3 24.2 23.9 24.4 24.0 23.9 24.2
Answer Preview: The data shows that the boards are slightly oversized, since the mea…

, Chapter: 3 -Problem: 15 >> Given the following data, calculate the projected available balance and the planned MPS receipts. The lot size is 100. The demand time fence is 2 weeks. Transcribed Image Text: Week Forecast Customer Orders Projected Available Balance MPS 60 1 50 60 2 50 30 3 50 65 4 50 25
Answer Preview: Week Forecast Customer …

, Chapter: 13 -Problem: 5 >> In problem 13.4, if the company can ship the units unassembled, it can ship 750 units in a truck. What is the line haul cost per unit now?
Answer Preview: Line haul …

, Chapter: 2 -Problem: 8 >> A company wants to develop a level production plan for a family of products. The opening inventory is 550 units, and a decrease to 200 units is expected by the end of the plan. The demand for each of the periods is given in what follows. All periods have the same number of working days. How much should the company produce each period? What will be the ending inventories in each period? Do you see
Answer Preview: Total production = 5600 + 200 550 = 5250 units Peri…

, Chapter: 2 -Problem: 19 >> What is the difference between make-to-order and assemble-to-order? Give an example of each.
Answer Preview: The assemble to order strategy is a hybrid between the make to stock strategy (MTS) …

, Chapter: 1 -Problem: 1 >> 1. What are the key issues in this case? In other words, analyze the case to try to determine the true problems from the symptoms of those problems. How do these issues relate to the issue of strategy?2. What type of data would you suggest collecting to both verify the problem identifications are correct and to provide solution approaches and support? How would you organize and use that data?3. Wh
Answer Preview: Key Issues: 1. Business Focus: Fran is having difficulty managing the unpredictable demand for spot flower purchases and the lack of delivery services for those purchases. Additionally, she has not es…

, Chapter: 3 -Problem: 10 >> What is a planning horizon? What decides its minimum time? Why would it be longer?
Answer Preview: Planning horizon -The time span for which plans are made…

, Chapter: 13 -Problem: 2 >> A company manufactures component parts for machine tools in North America and ships them to Southeast Asia for assembly and sale in the local market. The components are shipped by sea, transit time averages 6 weeks, and the shipping costs $2700 per shipment. The company is considering moving the parts by air at an estimated cost of $7500; the shipment taking 2 days to get there. If inventory carry
Answer Preview: Sea Air Transportation cost $2700 $7500 Inventory carrying cost 4…

, Chapter: 16 -Problem: 2 >> In which four areas must quality be considered? How do they interrelate?
Answer Preview: Areas in which quality must be considered are as follows: - Material properties …

, Chapter: 16 -Problem: 4 >> The specification for the weight of a chemical in a compound is ±0.06. If the standard deviation of the weighing scales is 0.02, is the process considered capable?
Answer Preview: C P = (USL LSL)/6 x .02 = …

, Chapter: 4 -Problem: 5 >> Given the following product tree, explode, offset, and determine the gross and net requirements. All lead times are 1 week, and the quantities required are shown in parentheses. The master production schedule calls for 100 As to be available in week 5. There are 20 Bs available. All other on-hand balances = 0. Transcribe
Answer Preview: Part A Part B Part C Part D Part E Part F Week Gross requirements Projected …

, Chapter: 12 -Problem: 3 >> A company has an area for storing pallets as shown in the following diagram. How many pallets measuring 48? × 40? can be stored three high if there is a 2? space between the pallets? Transcribed Image Text: 200' 4' Aisle 4'
Answer Preview: Number of pallets posi…

, Chapter: 2 -Problem: 7 >> A company wants to develop a level production plan for a family of products. The opening inventory is 100 units, and an increase to 150 units is expected by the end of the plan. The demand for each period is given in what follows. How much should the company produce each period? What will be the ending inventories in each period? All periods have the same number of working days.
Answer Preview: Total production = 700 + 100 150 = 750 units Period …

, Chapter: 11 -Problem: 10 >> If the standard deviation is calculated from weekly demand data at 100 units, what is the equivalent sigma for a 3-week lead time?
Answer Preview: The provided information are: Sigma for the interval = 100 units L…

, Chapter: 2 -Problem: 15 >> What is a hybrid strategy? Why is it used?
Answer Preview: Hybrid strategy: - Designing a hybrid strategy which emphasizes both differentiation …

, Chapter: 15 -Problem: 7 >> After a product is designed, what is the responsibility of manufacturing engineering?
Answer Preview: The manufacturing engineer is focused on maintaining, dev…

, Chapter: 11 -Problem: 8 >> A company stocks an SKU with a weekly demand of 225 units and a lead time of 3 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 175 and the order quantity is 800 units, what is the safety stock, the average inventory, and the order point? Stocks Stocks or shares are generally equity instruments that provide the largest source of raising
Answer Preview: Orders per year = 225 52/800 = 14 625 Service level = 15 25 16 25 = 93% …

, Chapter: 2 -Problem: 12 >> A company wants to develop a level production plan for a family of products. The opening inventory is 500 units, and a decrease to 250 units is expected by the end of the plan. The demand for each of the months is given in what follows. How much should the company produce each month? What will be the ending inventory in each month? Do you see any problems with the plan? Ending
Answer Preview: Total production = 5600 + 250 500 = 5350 Daily production = 5350 119 = 44 95 …

, Chapter: 4 -Problem: 10 >> Given the following product tree, explode, offset, and determine the gross and net requirements. The quantities required are shown in parentheses. The master production schedule calls for the completion of 100 As in week 5. There is a scheduled receipt of 100 Bs in week 1. There are 200 Fs available. All order quantities are lot-for-lot.
Answer Preview: Part A Lead time: 1 week Part B Lead time: 1 week Part C Lead time: 1 week Part D Lead time: 1 week …

, Chapter: 15 -Problem: 8 >> Parent S requires three of component T and two of component U. Both T and U are run on work center 30. Setup time for T is 7 hours, and run time is 0.1 hour per piece. For component U, setup time is 8 hours, and run time is 0.2 hour per piece. If the rated capacity of the work center is 120 hours, how many Ts and Us should be produced in a week?
Answer Preview: Available capacity = 120 hours per week Let x = number of Ss t…

, Chapter: 14 -Problem: 8 >> A firm experienced abnormal scrap and collected data to see which parts were causing the problem, with the following results: part A?$5720, part B?$10,500, part C?$890, part D?$1130, and part F?$700. Complete the following table, listing the errors in descending order of importance. Construct a Pareto diagram. Transcribed
Answer Preview: Part B ADC E Total Number $ $…

, Chapter: 13 -Problem: 10 >> Suppose the company in problem 13.8 had another market area located between the parent plant and the proposed distribution center. The LTL costs from the plant to that market are $35 per cwt. The company estimates that LTL shipments from the distribution center will cost $6 per cwt. Should it supply this market from the distribution center or central supply? Distribution T
Answer Preview: From warehouse: Plant to warehouse cost = $20 00/cwt Warehouse to custo…

, Chapter: 8 -Problem: 8 >> Weekly demand for an item averaged 100 units over the past year. Actual demand for the next eight weeks is shown in what follows:a. Plot the data on graph paper.b. Letting ? = 0.25, calculate the smoothed forecast for each week.c. Comment on how well the forecast is tracking actual demand. Is it lagging or leading actual demand?
Answer Preview: a. Plot: b. Smoothed forecast =*(last week actual demand)+(1-)*(last week forecast) Smoothed forecas…

, Chapter: 13 -Problem: 7 >> A company in Calgary serves a market in the northwestern United States. Now it ships LTL at an average cost of $30 per unit. If the company establishes a distribution center in the market, it estimates the TL cost will be $15 per unit, inventory carrying costs will be $7 per unit, and the local LTL cost will average $6 per unit. If the company forecasts annual demand at 200,000 units, how much wil
Answer Preview: TL Calgary to market = $15 00 per unit Invento…

, Chapter: 6 -Problem: 15 >> Complete the following input/output report. What is the actual backlog at the end of period 5? Transcribed Image Text: Period Planned Input Actual Input Cumulative Variance 1 78 84 2 78 80 3 78 78 4 78 82 78 80 Total Planned Output Actual Output Cumulative Variance 80 85 80 83 80 80 80 888 76 8
Answer Preview: Period Planned input Actual input Cumulative variance la…

, Chapter: 2 -Problem: 4 >> Describe the responsibilities and inputs of the marketing, production, finance, and engineering departments to the strategic business plan.
Answer Preview: Marketing: It keeps your customers aware of the goods or services you sell them. Via ads, consume…

, Chapter: 3 -Problem: 14 >> What would happen if the planning horizon for the master schedule were too short? Why?
Answer Preview: Planning Horizon the time period for which plans are prepared. A best possible plan should cons…

, Chapter: 16 -Problem: 2 >> In problem 16.1, if the tolerance changes to ±0.0004 inch, approximately what percentage of the shafts will be within tolerance? In ProblemThe specification for the length of a shaft is 12 inches ±0.001 inch. If the process standard deviation is 0.00033, approximately what percentage of the shafts will be within tolerance?
Answer Preview: Number of standard deviations wi…

, Chapter: 2 -Problem: 9 >> A company wants to develop a level production plan. The beginning inventory is zero. Demand for the next four periods is given in what follows.a. What production rate per period will give a zero inventory at the end of period 4?b. When and in what quantities will backorders occur?c. What level production rate per period will avoid backorders? What will be the ending inventory in period 4?
Answer Preview: a. 8 units b. period 1, minus 1 c. …

, Chapter: 14 -Problem: 7 >> A major mail order house collected data on the reasons for return shipments over a 3-month period with the following results: wrong selection 62,000; wrong size 50,000; order canceled 15,000; wrong address 3000; other 15,000. Construct a Pareto diagram. Transcribed Image Text: Reason Total Number P
Answer Preview: Reason Wrong selection Wrong size Order cance…

, Chapter: 16 -Problem: 9 >> Create a House of Quality for a product familiar to you and complete the House of Quality form. Pick at least three different brands of the product to make the competitive comparison. List at least three customer needs inherent in the products and three features that deliver these needs. Identify the interactions among the features and establish target values for your new and improved product.
Answer Preview: For this question students will have unique answers. You can refer to Figure …

, Chapter: 8 -Problem: 2 >> Given the following data, calculate the three-month moving average forecasts for months 4, 5, 6, and 7. Transcribed Image Text: Month 1 2 3 ??? 4 5 6 7 Actual Demand 60 70 40 50 70 65 Forecast
Answer Preview: Month 1 2 3 4 …

, Chapter: 1 -Problem: 8 >> Name and describe the three main divisions of supply, production, and distribution systems. Distribution The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Answer Preview: Supply chain means supply and demand .This consis…

, Chapter: 1 -Problem: 3 >> On the average, a firm has an 8-week lead time for work-in-process, and annual cost of goods sold is $12 million. Assuming that the company works 50 weeks a year:a. What is the dollar value of the work-in-process?b. If the lead time could be reduced to 6 weeks, what would be the reduction in WIP?
Answer Preview: a. Weekly cost of goods sold = $12,000,000 …

, Chapter: 14 -Problem: 1 >> Given the following fixed and variable costs and the volumes, calculate the total and unit costs. Transcribed Image Text: Fixed cost $200.00 $200.00 $50.00 $800.00 $500.00 Variable cost $8.00 $7.00 $15.00 $2.00 $20.00 Volume (units) 100 1000 50 2000 500 Total cost Unit cost
Answer Preview: Fixed cost $200 00 $200 00 $50 00 $800 00 $500 …

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, Chapter: 8 -Problem: 12 >> Given the following average demand for each month, calculate the seasonal indices for each month. Your answer, if done correctly, should have all the seasonal indices add up to the number of periods in the entire season, in this case 12. Transcribed Image Text: Month January February March April M
Answer Preview: Month Average demand January February March Ap…

, Chapter: 15 -Problem: 2 >> In problem 15.1, if the annual carrying cost is 18% per unit, what will be the annual savings in carrying cost? In problem 15.1A company carries 10 items in stock, each with an economic order quantity of $20,000. Through a program of component standardization, the 10 items are reduced to 5. The total annual demand is the same, but the annual demand for each item is twice what it was before. In C
Answer Preview: Reduction in average in…

, Chapter: 3 -Problem: 7 >> Calculate the available to promise using the following data. There are 90 units on hand. Transcribed Image Text: Week Customer Orders MPS ATP 1 70 2 70 100 3 20 4 40 100 5 10 6 100
Answer Preview: Week Customer or…

, Chapter: 2 -Problem: 2 >> Define capacity and priority. Why are they important in production planning?
Answer Preview: Definition of Capacity and Priority in production planning: Capacity planning is a simple task for p…

, Chapter: 2 -Problem: 21 >> What is the general procedure for developing a level production plan in a make-to-order environment?
Answer Preview: Developing a make to order production plan: - wait until …

, Chapter: 12 -Problem: 4 >> A company has a warehouse with the dimensions shown in the following diagram. How many pallets measuring 48? × 40? can be stored three high if there is to be a 2? space between the pallets? Transcribed Image Text: 60 4' Aisle 4' 4' Aisle 4'
Answer Preview: Pallet positions …

, Chapter: 8 -Problem: 17 >> The Fast Track Ski Shoppe sells ski goggles during the four months of the ski season. Average demand follows: a. Calculate the deseasonalized sales and the seasonal index for each of the four months. b. If next year?s demand is forecast at 1200 pairs of goggles, what will be the forecast sales for each month? Transcribed
Answer Preview: Deseasonalized demand for past months = Total demand/number of …

, Chapter: 1 -Problem: 11 >> What are the objectives of finance? How can these objectives be met?
Answer Preview: The main Objective of Finance is: 1)Profit Maximization 2)Wealth Maximization 3)Prop…

, Chapter: 13 -Problem: 3 >> For a given commodity, the line haul cost is $13 per mile. For a trip of 200 miles and a shipment of 300 lbs., what is the cost per pound? If the shipment is increased to 500 lbs., what is the saving in cost per pound?
Answer Preview: Line haul cost = $13 00 200 = $2,600 Line ha…

, Chapter: 12 -Problem: 8 >> a. Which of the following items are within tolerance?b. What is the percent accuracy by item? Transcribed Image Text: Within Part Shelf Inventory Record Tolerance Tolerance? Number Count Difference % Difference 75 +3% A 80 ±0% 120 120 +5% 1400 1500 75 ±5% D 76 ±2% 68 66 Total
Answer Preview: a. b. Accuracy by item = 2 / 5 x 100% = 40% Part numbe…

, Chapter: 14 -Problem: 9 >> A process has a production rate of 30 units per hour. If it takes 50 minutes for a single unit to be completed in the process, what is the inventory of units in the process?
Answer Preview: The rate R is 30 units per …

, Chapter: 1 -Problem: 1 >> What is wealth, and how is it created?
Answer Preview: The wealth of a country is measured by its gross national product-the output of goods and serv…

, Chapter: 1 -Problem: 3 >> Name and describe four major factors affecting operations management.
Answer Preview: Operation management is simply an area in the organisation which basically plan, organize, direct an…

, Chapter: 2 -Problem: 11 >> When making a production plan, why is it necessary to select a common unit or to establish product families?
Answer Preview: Product family depict the group of goods that are inter-related fro…

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, Chapter: 16 -Problem: 1 >> The specification for the length of a shaft is 12 inches ±0.001 inch. If the process standard deviation is 0.00033, approximately what percentage of the shafts will be within tolerance?
Answer Preview: Number of standard deviations wi…

, Chapter: 1 -Problem: 9 >> What are the four objectives of a firm wishing to maximize profit?
Answer Preview: The four objectives of a firm wishing to max…

, Chapter: 14 -Problem: 3 >> A manufacturer has a choice of purchasing and installing a heat-treating oven or having the heat treating done by an outside supplier. The manufacturer has developed the following cost estimates: a. What is the cost equalization point?b. Should the company have the heat treating done by an outside supplier if the annual volume is 3000 units? 5000 units?c. What would be the unit (average) cost for
Answer Preview: Heat treat in-house Purchase services Fixed cost $28,00…

, Chapter: 11 -Problem: 6 >> The standard deviation of demand during the lead time is 100 units.a. Calculate the safety stock required for the following service levels: 75%, 80%, 85%, 90%, 95%, and 99.99%.b. Calculate the change in safety stock required to increase the service levels from 75 to 80%, 80 to 85%, 85 to 90%, 90 to 95%, and 95 to 99.99%. What conclusion do you reach?
Answer Preview: Safety factors taken from Figure 11 5 Service Safety Safety Change in Level …

, Chapter: 15 -Problem: 7 >> Parent W requires one of component B and two of component C. Both B and C are run on work center 10. Setup time for B is 2 hours, and run time is 0.1 hour per piece. For component C, setup time is 2 hours, and run time is 0.15 hour per piece. If the rated capacity of the work center is 80 hours, how many Ws should be produced in a week?
Answer Preview: Available capacity = 80 hours per week Let x = number …

, Chapter: 1 -Problem: 1 >> If the cost of manufacturing (direct material and direct labor) is 60% of sales and profit is 10% of sales, what would be the improvement in profit if, through better planning and control, the cost of manufacturing was reduced from 60% of sales to 50% of sales?
Answer Preview: Sales 100% 100% Cost of manufacturing 60% 50% Other costs …

, Chapter: 16 -Problem: 3 >> The specification for the thickness of a piece of steel is 0.5 inch ±0.05 inch. The standard deviation of the band saw is 0.015. Using Cp, calculate whether the process is capable or not.
Answer Preview: The CP is greater than one …

, Chapter: 2 -Problem: 13 >> What are five typical characteristics of the production planning problem?
Answer Preview: 1 Everyones efforts are aligned to core operational competencies in support of business strategy The …

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, Chapter: 4 -Problem: 9 >> MPS parent X has planned order releases of 30 in weeks 2 and 4. Given the following product tree, complete the MRP records for parts Y and Z. Quantities required are shown in brackets. Transcribed Image Text: Z(2) Y(1) X T S Part Y Lead Time: 2 weeks Lot Size: 50 Gross Requirements Scheduled Rece
Answer Preview: Part Y Lead time 2 weeks Lot Size: 50 Gross requirements Scheduled receipts Pro…

, Chapter: 1 -Problem: 23 >> Which manufacturing strategies are used in a fast-food business? How does this affect the lead time from the customers’ point of view?
Answer Preview: The fast food business uses assemble to order manufacturing strategy. It means that the the product …

, Chapter: 11 -Problem: 14 >> The safety stock on an SKU is set at 500 units. The supplier says it has to increase the lead time from 4 to 5 weeks. What should be the new safety stock?
Answer Preview: Safety stock on SKU is 500 un…

, Chapter: 14 -Problem: 2 >> A process costs $200 to set up. The run time is 5 minutes per piece and the run cost is $30 per hour. Determine the following:a. The fixed cost.b. The variable cost.c. The total cost and unit cost for a lot of 600.d. The total cost and unit cost for a lot of 1200.
Answer Preview: a. Fixed cost = $200 00 b. Variable cost = 5 …

, Chapter: 15 -Problem: 34 >> Provide an example of value stream mapping.
Answer Preview: Takt time is the rate at which you need to complete a product t…

, Chapter: 2 -Problem: 2 >> A company wants to produce 480 units over the next three months at a uniform rate. The months have 19, 20, and 21 working days, respectively. On the average, how much should the company produce each day to level production?
Answer Preview: Total working days = …

, Chapter: 2 -Problem: 3 >> A company plans to produce 25,000 units in a 3-month period. The months have 22, 21, and 20 working days, respectively. What should the average daily production be?
Answer Preview: Total working days = 2…

, Chapter: 2 -Problem: 14 >> If the opening backlog is 450 units, forecast demand is 700 units, and production is 800 units, what will be the ending backlog?
Answer Preview: Ending backlog = dem…

, Chapter: 1 -Problem: 4 >> On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold of $30 million. Assuming that the company works 50 weeks a year:a. What is the dollar value of the work-in-process?b. If the work-in-process could be reduced to 5 weeks and the annual cost of carrying inventory was 20% of the WIP inventory value, what would be the annual savings?
Answer Preview: a. Weekly cost of goods sold = $30,000,000 = $600,000 50 Value of …

, Chapter: 1 -Problem: 2 >> In problem 1.1, how much would sales have to increase to provide the same increase in profits? In ProblemIf the cost of manufacturing (direct material and direct labor) is 60% of sales and profit is 10% of sales, what would be the improvement in profit if, through better planning and control, the cost of manufacturing was reduced from 60% of sales to 50% of sales?
Answer Preview: Profit = Sales (direct costs + overhead) 0 20 = Sales (0 60 Sales + 0 3…

, Chapter: 2 -Problem: 10 >> If the cost of carrying inventory is $60 per unit per period and stockout cost $500 per unit, what will be the cost of the plan developed in problem 2.9a? What will be the cost of the plan developed in 2.9c?a. What production rate per period will give a zero inventory at the end of period 4?c. What level production rate per period will avoid backorders? What will be the ending inventory in period
Answer Preview: a. There is a stockout of 1 unit in period one. The cost will be: …

, Chapter: 6 -Problem: 12 >> An order for 100 of a product is run on work center 40. The setup time is 4 hours, and the run time is 3 minutes per piece. Since the order is a rush and there are two machines in the work center, it is decided to split the order and run it on both machines. Calculate the manufacturing lead time before and after splitting.
Answer Preview: MLT before splittin…

, Chapter: 5 -Problem: 6 >> Over a period of 4 weeks, a work center produced 50, 45, 42, and 52 standard hours of work. What is the demonstrated capacity of the work center?
Answer Preview: Demonstrated …

, Chapter: 5 -Problem: 7 >> In an 11-week period, a work center produces 1050 standard hours of work. What is the measured capacity of the work center?
Answer Preview: Measured c…

, Chapter: 5 -Problem: 3 >> If the efficiency of the work center in problem 5.1 is 120%, what is the rated capacity of the work center?
Answer Preview: Rated capa…

, Chapter: 2 -Problem: 16 >> The opening backlog is 1100 units. Forecast demand is as shown here. Calculate the weekly production for level production if the backlog is to be increased to 1200 units. Transcribed Image Text: 3 2 5 Total 4 6. Week Forecast Demand 1200 1200 1100 1200 1100 1000 Planned Production Projected 1100 Bac
Answer Preview: Desired ending backlog = 1200 All weekly production amounts determined using standard r…

, Chapter: 9 -Problem: 11 >> If the liabilities are $4,000,000 and the owners’ equity is $1,200,000, what are the assets worth?
Answer Preview: Assets = liabil…

, Chapter: 5 -Problem: 8 >> In 1 week, a work center produces 75 standard hours of work. The hours scheduled are 80, and 72 hours are actually worked. Calculate the utilization and efficiency of the work center.
Answer Preview: Utilization …

, Chapter: 11 -Problem: 2 >> For a particular SKU, the lead time is 6 weeks, the average demand is 90 units a week, and safety stock is 200 units. What is the average inventory if 10 weeks’ supply is ordered at one time? What is the order point?
Answer Preview: Average inventory = …

, Chapter: 6 -Problem: 3 >> In problem 6.2, what percentage of the time is the order actually running?In problem 6.2An order for 100 of a product is processed on work centers A and B. The setup time on A is 50 minutes, and run time is 5 minutes per piece. The setup time on B is 60 minutes, and the run time is 5 minutes per piece. Wait time between the two operations is 5 hours. The move time between A and B is 40 minutes. Wa
Answer Preview: (100 x 5 +100 x 5) 5…

, Chapter: 5 -Problem: 14 >> A work center has the following open and planned orders for week 4. Calculate the total standard time required (load). Transcribed Image Text: Order Quantity Setup Time (hours) Total Time Run Time (hours/piece) (hours) Released Orders 125 200 0.50 0.10 345 70 0.75 0.05 Planned Orders 565 80 1.00 0.2
Answer Preview: Released orders 125 345 Order quantity Planned …

, Chapter: 10 -Problem: 12 >> A company manufactures five sizes of screwdrivers. Ordering costs and carrying costs are not known, but it is known that they are the same for each size. At present, each size is produced four times per year. If the demand for each size is as follows, calculate order quantities to minimize inventories and maintain the same total number of runs. Calculate the old and new average inventories. Is the
Answer Preview: K = 315 20 = 15 75 Item Annual Usage $12,100 $8,100 $3,600 $1,600 $225 $25,625 …

, Chapter: 8 -Problem: 19 >> For the following data, calculate the mean absolute deviation. Transcribed Image Text: Actual Demand Period Forecast Absolute Deviation 105 1 100 105 95 3 110 90 4. 115 130 100 5 120 6. 125 120 Total 675 650
Answer Preview: MAD = 14 2 Period 1 2 3 4 5 6 …

, Chapter: 8 -Problem: 1 >> Over the past three months, the demand for a product has been 255, 219, and 231. Calculate the three-month moving average forecast for month 4. If the actual demand in month 4 is 228, calculate the forecast for month 5.
Answer Preview: Forecast for month …

, Chapter: 7 -Problem: 2 >> If suppliers were to be rated on the following basis, what would be the ranking of the two suppliers listed? Transcribed Image Text: Rating of Suppliers Ranking of Suppliers Weight Supplier A Supplier B Supplier A Supplier B Factor Function Cost Technical Assistance Credit Terms 4 4
Answer Preview: Factor Weight Rating of Ranking of Suppliers Supplie…

, Chapter: 9 -Problem: 3 >> Given the following percentage costs of carrying inventory, calculate the annual carrying cost if the average inventory is $1 million. Capital costs are 10%, storage costs are 6%, and risk costs are 9%.
Answer Preview: Annual carry…

, Chapter: 5 -Problem: 12 >> How many standard hours are needed to run an order of 500 pieces if the setup time is 2.0 hours and the run time 0.3 hours per piece? How many actual hours are needed at the work center if the efficiency is 110% and the utilization is 85%?
Answer Preview: Time required = 2 0 + …

, Chapter: 2 -Problem: 17 >> For the following data, calculate the number of workers required for level production and the resulting month-end inventories. Each worker can produce 15 units per day, and the desired ending inventory is 9000 units. Ending Inventory The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the e
Answer Preview: Total production = 112,500 + 9000 11,250 = 110,250 units Daily production = 110…

, Chapter: 8 -Problem: 14 >> If the actual demand for April was 1440 units and the seasonal index was 2.5, what would be the deseasonalized April demand?
Answer Preview: Deseasonal…

, Chapter: 11 -Problem: 3 >> Given the following data, calculate the average x of the distribution and the standard deviation (?). Distribution The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Answer Preview: Average demand = 500 units Sum of the squares of deviations = 51250 Average …

, Chapter: 5 -Problem: 4 >> A work center consisting of 7 machines is operated 16 hours a day for a 5-day week. Utilization is 80%, and efficiency is 110%. What is the rated weekly capacity in standard hours?
Answer Preview: Rated capac…

, Chapter: 3 -Problem: 17 >> Product A is an assemble-to-order product. It has a lot size of 150, and currently has an on-hand inventory of 110 units. There is a 2-week demand time fence and a 12-week planning time fence. The following table gives the original forecast and the actual customer orders for the next 12 weeks: a. Given this information, develop a realistic master schedule, complete with ATP logic.b. Tell how you w
Answer Preview: a. b. 20 units in week three - Can provide from current inventory on hand 40 units in week …

, Chapter: 9 -Problem: 2 >> A company is using a carrier to deliver goods to a major customer. The annual demand is $2,500,000, and the average transit time is 10 days. Another carrier promises to deliver in 7 days. What is the reduction in transit inventory?
Answer Preview: Average annual r…

, Chapter: 4 -Problem: 1 >> Using the following product tree, construct the appropriate single-level trees. How many Cs are needed to make 50 Xs and 100 Ys? Transcribed Image Text: ? A(2) C(2) E(2) E(2) C(2)
Answer Preview: Each X requires 2 As. Each A requires 2 Cs…

, Chapter: 9 -Problem: 15 >> If the annual cost of goods sold is $30,000,000 and the average inventory is $5,000,000,a. What is the inventory turns ratio?b. What would be the reduction in average inventory if, through better materials management, inventory turns were increased to 10 times per year?c. If the cost of carrying inventory is 25% of the average inventory, what is the annual savings?
Answer Preview: a. Turns ratio = $30,000,000/$5,000,000 …

, Chapter: 5 -Problem: 17 >> Back schedule the following shop order. All times are given in days. Move time between operations is 1 day, and wait time is 1 day. Due date is day 150. Assume orders start at the beginning of a day and finish at the end of a day. Transcribed Image Text: Operation Time (days) Arrival Queue Time (day
Answer Preview: Operation Work number center 10 …

, Chapter: 3 -Problem: 11 >> Calculate the available to promise using the following data. There are 50 units on hand. Transcribed Image Text: Week 1 2 3 5 4 30 30 Customer Orders 20 50 30 50 MPS 100 100 ATP 2.
Answer Preview: On hand: 60 units …

, Chapter: 3 -Problem: 12 >> Given the following data, can an order for 20 for delivery in week 4 be accepted? Calculate the ATP using the following table. On hand = 50 units. Transcribed Image Text: Week 2 3 5 4 8. 40 30 Customer Orders 50 50 40 15 50 30 MPS 100 100 100 100 ATP 3. 2.
Answer Preview: On hand: 50 units Week …

, Chapter: 9 -Problem: 12 >> Given the following data, calculate the gross margin and the net income.Revenue = $3,000,000Direct labor = $700,000Direct material = $900,000Factory overhead = $700,000General and administrative expense = $300,000
Answer Preview: Revenue $3,000,000 Direct labor = $700,000 Direct material = …

, Chapter: 11 -Problem: 4 >> Given the following data, calculate the average demand and the standard deviation. Transcribed Image Text: Period Actual Deviation Deviation Demand Squared 1700 2100 1900 4 2200 5 2000 6. 1800 7. 2100 2300 8. 2100 10 1800 Total
Answer Preview: Average demand = 2000 units Sum of the squares of deviations = 340,000 Average o…

, Chapter: 9 -Problem: 1 >> If the transit time is 11 days and the annual demand for an item is 10,000 units, what is the average annual inventory in transit?
Answer Preview: Average annua…

, Chapter: 10 -Problem: 14 >> Given the following net requirements, calculate the planned order receipts based on the period order quantity. The EOQ is 250 units, and the annual demand is 4200 units. Transcribed Image Text: Week 4 8. 5 6 Net Requirements 100 90 630 80 85 100 85 90 Planned Order Receipts 2.
Answer Preview: Weekly average demand = 630 8 weeks = 78 75 per week POQ = …

, Chapter: 7 -Problem: 3 >> A company is negotiating with a potential supplier for the purchase of 100,000 widgets. The company estimates that the supplier’s variable costs are $5 per unit and that the fixed costs, depreciation, overhead, and so on, are $50,000. The supplier quotes a price of $10 per unit. Calculate the estimated average cost per unit. do you think $10 is too much to pay? Could the purchasing department nego
Answer Preview: Fixed cost = $50,000 Variable cost = $5 00 per …

, Chapter: 10 -Problem: 7 >> Refer to problem 10.3. The supplier offers a 2% discount on orders of 5000 units. Calculate the purchase cost, the cost of ordering, the cost of carrying, and the total cost if orders of 5000 are placed. Compare the results and calculate the savings if the discount is taken.In Problem 10.3A company decides to establish an EOQ for an item. The annual demand is 400,000 units, each costing $9, orderi
Answer Preview: A = 400,000 units = $3,600,000 S = $35 C = $9 00 i = 22…

, Chapter: 2 -Problem: 5 >> In problem 2.3, how much will be produced in each of the three months?In problem 2.3A company plans to produce 25,000 units in a 3-month period. The months have 22, 21, and 20 working days, respectively. What should the average

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