Chapter 14 Michaels Hardware
The goal of this case is to get students to understand that the value of using aggregation
through milk runs and intermediate facilities when designing transportation networks. The case
also gets students to see that as demand
CoolWipes
1) The total cost to serve the entire nation from Chicago is $32,661.40 as illustrated below:
2) Based upon a reduction in total costs to $29,189, we would recommend building a plant
Princeton, Atlanta and LA. All plants would offer both the Wip
Value of Aggregation (Problem 12.15)
Popular variant at Large dealer
Demand per period (weekly) per location, Di =
Standard deviation of demand, sD =
Ave replenishment lead time, L (weeks)=
Standard deviation over L, sL =
Desired cycle service level, CSL
Chapter 12 Postponement
The goal of this case is to get students to understand that the value of postponement is affected
by the value of the product, coefficient of variation as well as the correlation of demand. High
value products with high coefficient
CHAPTER 5
Case Questions
Location
Seattle
Denver
St. Louis
Atlanta
Philadelphia
Small Warehouse
Fixed Cost
Variable Cost
$300,000
0.2
$250,000
0.2
$220,000
0.2
$220,000
0.2
$240,000
0.2
Seattle
Denver
St. Louis
Atlanta
Philadelphia
Northwest
$2.00
$2.50
$
Should Packaging be Postponed to the DC?
Holding cost =
CSL =
Lead time =
Correlation coefficient
Increase in cost/unit on postponement
Unit Cost
Weekly Demand
Target
Best Buy
Office Max
Staples
Aggregate
Demand
30%
0.95
9 weeks
0
$2.00
Q1: the answer is
Input Data
Number of suppliers =
Number of retail stores =
Demand per store from each supplier =
Cost per large trailer =
Cost per small truck =
Large trailer capacity =
Small truck capacity =
Holding cost per unit per year =
Cost / large truck stop =
Cos
SPC
Year
2005
2006
2007
2008
2009
Quarter
I
II
III
IV
I
II
III
IV
I
II
III
IV
I
II
III
IV
I
II
III
IV
Black Plastic Demand Clear Plastic Demand
('000 lbs)
('000 lbs)
2250
3200
1737
7658
2412
4420
7269
2384
3514
3654
2143
8680
3459
5695
7056
1953
4120
4742
Exercise 13.11: DoorRed Pharmacy
Daily demand for Aspirin at DoorRed Pharmacy is normally distributed with a mean of 40
bottles and a standard deviation of 5. The replenishment lead time from the supplier is 1 day.
The current inventory policy at DoorRed
Chapter 6 - Forever Young Solution
The decision tree for Forever young is as follows:
D = 1,210
E= 7.16625
0.5 0.5
0.5 0.5
0.5 0.5
0.5 0.5
D = 1,100
E= 6.825
D = 1,000
E= 6.50
0.5 0.5
D = 1,100
E= 6.175
D = 900
E= 6.825
0.5 0.5
0.5 0.5
0.5 0.5
0.5 0.5
D =
Chopra 5e Chapter 8 case discussion
What actions do you think influence the actions and decisions? For example, do you
think that the price the subcontractor charges have any relationship to the amount
of private warehousing space to be leased?
Public war
Excersise 12-1: Best Buy
Weekly demand for Motorola cell phones at a Best Buy store is normally distributed with a mean of
300 and a standard deviation of 200. Motorola takes two weeks to supply a Best Buy order. Best Buy
is targeting a cycle service leve
Exercise 13-5 Snoblo
Snoblo, a manufacturer of snow blowers, currently sells four models. The base model, Reguplo, has demand that is normally
distributed with a mean of 10,000 and a standard deviation of 1,000. The three other models have additional feat
1. What is the annual cost of MoonChems strategy of sending full truckloads to
each customer in the Peoria region to replenish consignment inventory?
MoonChems customer profile appears in Table 10-4 and is reproduced below:
Customer
Type
Small
Medium
Larg
Chopra/Meindl 5/e
CHAPTER 5
Case Questions (see corresponding Chapter 5 case Excel spreadsheet)
1. What is the cost SportStuff.com incurs if all warehouses leased are in St. Louis?
Demand in 2007 is as shown in Table 5-15
Demand 2007
Northwest
320,000
Sou
Exercise 13-3: Goodstone Tires
The manager at Goodstone Tires, a distributor of tires in Illinois, uses a
continuous review policy to manage their inventory. The manager currently
orders 10,000 tires when the inventory of tires drops to 6,000. Weekly
dema
Case Study - MoonChem
Questions
1. What is the current annual cost of MoonChem's strategy of sending full truck loads to each customer in the Peoria region to replenish
consignment inventory?
2. Consider different delivery options and evaluate the cost of
Chopra/Meindl 5/e
CHAPTER SIX
BioPharma Case Questions
1. How should BioPharma have used its production network in 2009? Should any of
the plants have been idled? What is the annual cost of your proposal, including
import duties?
This solution was obtaine
Chapter 9 Mintendo Game Girl
The results for this case are obtained using the accompanying spreadsheet Mintendo Case
Study.
Basic Model
The decision variables are contained in Cells B4:I10 in worksheet pricing. The constraints are
as follows:
Workforce ba
HighOptic
Inputs - Costs, Capacities, Demands (Table 5-2 for HighOptic)
Demand City
Production and Transportation Cost per 1000 Units
Atlanta
Boston
Chicago
Denver Omaha
1,675
400
685
1,630
1,160
1,460
1,940
970
100
495
1,925
2,400
1,425
500
950
380
1,355
Inputs - Costs, Capacities, Demands
Demand Region
Production and Transportation Cost per 1,000,000 Units
Fixed
Low Fixed
High
Supply Region N. America S. America Europe
Asia
Africa
Cost ($) Capacity Cost ($) Capacity
N. America
81
92
101
130
115
6,000
10
Specialty Packaging Corporation
The safety capacity constraint at the thermoforming presses is shown in Cells AC5:AC16. The safety
capacity constraint indicates that the available thermoforming capacity in a given period be at least (1+x)
times the foreca
Specialty Packaging Corporation
Let us now set the desired safety capacity in period 10 to 0 (change Cell AD14 to 1). Now click on the
Solver button to reoptimize. The resulting aggregate plan carries more inventory of plastic sheets and a
higher capacity
Specialty Packaging Corporation
Initially let us plan a 10% safety inventory after the extruders and a 10% safety capacity after the
thermoforming presses. To set 10% safety inventory change Cell AB17 to 1.1. To set 10% safety capacity
change Cells AD5:AD
Specialty Packaging Corporation
Forecast errors can only be dealt with using one of the following levers in aggregate planning:
1. Carry safety capacity (internal or subcontracted)
2. Build safety inventory
In the case of SPC, given that no inventory of f
Specialty Packaging Corporation
In reality, demand forecasts are not accurate. We have been told that the forecast for clear plastic has a
MAD of 608 while the forecast for lack plastic has a MAD of 786. We can thus evaluate the standard
deviation of fore