OldTests_F08

# 3 points part b 4 points for a product satisfying eoq

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schedule the production on the machine. (3 points) Part (B) [4 points]: For a product satisfying EOQ assumptions, annual demand is 12000, ordering cost is \$200 and the holding cost per unit per year is \$3.25. If you order 1000 units per lot instead of optimal lot size, how much higher would be your annual inventory cost? Question 5 [14 points]: Part (A) [4 points]: daily demand for a product is N~ [100, 10]. SL = 90% and LT = 5 days. 1. If you use Q system, what will be the safety stock? 2. If you use P system (with OI = 4 days), what will be the safety stock? Part (B) [ 6 points]: For the news vendor model, demand for a product is uniform U[A = 500, B = 1000]. The selling price is 50 dollars, the purchase price is 30 and the salvage value is 25. 1) What will be the optimal lot size 2) What will be the expected profit if we stock 800 units? Part (C) [4 points]: For a particular product, the customer expects process capability of 1.1. What action would you take for the following situations? 1. You measure the process capability and find C P = 1.2 and C PK = 1.13. 2. You have just started trial production for the first time . Question 6 [18 points]: A) Complete the MRP calculations in the following table. You can put “-“ in a cell where there is no number or zero when quantity calculated is zero or the actual number. (10 points) 0 1 2 3 4 5 6 X POR 0 0 0 50 40 90 0 Y POR 0 0 100 50 150 0 0 A POR 0 500 0 180 0 200 0 B L = 2 FOQ 200 SS = 0 © 2Y, A GR - SR - 200 - - - - - OH 600 PR - POR C L = 2 POQ 2 SS = 50 © 4X, 2Y, A, 2B GR - SR - 1200 - - - - - OH 800 PR - POR B) Find the item levels and draw product structure diagram (8 points) Item Child Level Final A - B F D - E F, D F A, G G D S A, D X S

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OldTests_F08.doc Page 14 Question 7 [10 points]: In the beer distribution game, (number of) kegs at various stages at the beginning on day 15 are shown below. Extreme right box for each party is the warehouse. Smaller boxes to the left are stages. a) Show the status after step 1 is carried out (move the pipeline) in the table below. (2 points) b) The order quantities on day 15 are as follows: Brewery – produce 12, distributor – order 20, wholesaler - order 3, retailer – order 14 and consumer – order 8. Suppose the backlog for the distributor is 10 (needs to deliver these plus the new order units to the wholesaler) and backlog for the retailer is 3 (needs to deliver these units plus the new order to the consumer). Show the status at the end of the day in the last column. (5 points) c) List inventory / backlog amounts and calculate inventory holding / backlog costs for day 15 for each. Holding cost (charged for the warehouse inventory) is \$1 per keg per day. Backlog cost is \$2 per keg per day (3 points). Quantities Costs Party Inventory Backlog Inventory cost Backlog cost Brewer Distributor Wholesaler Retailer Brewery Distributor Wholesaler Retailer Before step 1 6 10 8 8 16 6 0 10 14 6 10 5 8 7 0 St. 1 St. 2 Ware St. 1 St. 2 St. 3 Ware St. 1 St. 2 St. 3 Ware St. 1 St. 2 St. 3 Ware Brewery Distributor Wholesaler Retailer After step 1 St. 1 St. 2 Ware St. 1 St. 2 St. 3 Ware St. 1 St. 2 St. 3 Ware St. 1 St. 2 St. 3 Ware Brewery Distributor Wholesaler Retailer After delivery St. 1 St. 2 Ware St. 1 St. 2 St. 3 Ware St. 1 St. 2 St. 3 Ware St. 1 St. 2 St. 3 Ware
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