Homework II 1. Your company has compiled the following data on the small set of products that comprise the specialty repair parts division. Perform ABC analysis on the data. Which products do you suggest the firm keep the tightest control over? Explain. SKU Annual Demand Unit Cost R11 250 $250 S22 75 $90 T33 20 $60 U44 150 $150 V55 100 $75 2. A product whose EOQ is 400 experiences a 50% increase in demand. The new EOQ is? 3. A product has the following gross requirements. Which is cheaper—lot-for-lot or EOQ lot sizing? Week 1 2 3 4 5 6 Requirements 50 80 90 50 30 60 Other data for this scenario include: setup cost = $250, inventory holding cost $2 per unit per week. There is no beginning inventory; there are no scheduled receipts. The usage pattern is expected to continue for the remainder of the year. 4. A HSMC student said that without the internet, supply chain management would not have been so effective. Agree or disagree? Explain. 5.
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