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# RParslow_M444_M4_A4.3CPs Chapter 7 pg. 245-247 1. Given the following inventory information, perform an ABC analysis. ITEM NUMBER UNIT COST \$\$ B8867...

Complete the following homework questions from MGMT 444, Chapters 7 and 8 Principles of Supply Chain Management, (Wisner, Tan, Leong.)  Use the attached word document

Chapter 7 pg. 245-247

1. Given the following inventory information, perform an ABC analysis.
 ITEM NUMBER UNIT COST \$\$ ANNUAL USAGE (UNITS) TOTAL COST % OF TOTAL COST CATAGORY B8867 6.00 100 600 0% C J1252 5.25 6,500 34,125 24% A K9667 0.25 4,000 1,000 1% C L2425 1.00 1,500 1,500 1% C M4554 5.50 2,000 11,000 8% C T6334 70.00 500 35,000 25% A W9856 0.75 800 600 0% C X2215 1.50 8,000 12,000 8% C Y3214 32.00 1,000 32,000 23% A Y6339 4.00 3,500 14,000 10% B TOTAL 141,825 100%

1. Given the following inventory information, construct an:
2. ABC Analysis by annual dollar usage
3. ABC Analysis by current inventory value
4. An ABC inventory matrix. Is the firm stocking the correct inventories?
 ITEM NUMBER UNIT COST \$ ANNUAL USAGE (UNITS) CURRENT INVENTORY (UNITS) ANNUAL DOLLAR VALUE INVENTORY VALUE TOTAL Annual Dollar Usage B8867 6.00 100 8,000 J1252 5.25 6,500 120 K9667 0.25 4,000 1,000 L2425 1.00 1,500 375 M4554 5.50 2,000 500 T6334 70.00 500 800 W9856 0.75 800 20,000 X2215 1.50 8,000 2,000 Y3214 32.00 1,000 500 Y6339 4.00 3,500 125 TOTAL

1. Given the following inventory information, construct an:
2. ABC Analysis by annual dollar usage
3. ABC Analysis by current inventory value
4. An ABC inventory matrix. Is the firm stocking the correct inventories?
 ITEM NUMBER ITEM COST \$ ANNUAL USAGE (UNITS) ANNUAL DOLLAR USAGE \$ % OF TOTAL ANNUAL \$\$ Usage Classification by Annual \$\$ Usage A967 32.00 1 32.00 B886 6.00 100 600.00 C314 5.25 32 168.00 D879 12.50 54 675.00 E536 0.05 125 6.25 F876 0.07 423 29.61 G112 0.12 500 60.00 H098 1.22 235 286.70 J125 5.25 6,500 34,125.00 K966 0.25 4,000 1,000.00 L242 1.00 1,500 1,500.00 M455 5.50 2,000 11,000.00 N007 7.21 54 389.34 P231 5.25 32 168.00 Q954 3.25 25 81.25 T633 70.00 500 35,000.00 W985 0.75 800 600.00 X221 1.50 8,000 12,000.00 Y321 32.00 1,000 32,000.00 Z633 4.00 3,500 14,000.00 TOTAL 143,721.15

 Item Number Unit cost \$ Current Inventory Units Current Inventory Value \$ %Total Inventory Value Total Inventory Value Annual Dollar Usage A967 32.00 4,500 144,000 B886 6.00 8,000 48,000 C314 5.25 115 603.75 D879 12.50 254 3,175.00 E536 0.05 120 6.00 F876 0.07 500 35.00 G112 0.12 1,008 120.96 H098 1.22 750 915.00 J125 5.25 120 630.00 K966 0.25 1,000 250.00 L242 1.00 375 375.00 M455 5.50 500 2,750.00 N007 7.21 525 3,785.25 P231 5.25 300 1575.00 Q954 3.25 240 780.00 T633 70.00 800 56,000 W985 0.75 20,000 15,000 X221 1.50 2,000 3,000 Y321 32.00 500 16,000 Z633 4.00 125 500.00 TOTAL 193.17 41,732 297,500.96

Chapter 8 pg. 295-296

1. Mejza compressors uses a lean production assembly line to make compressors. In one assembly area the demand is 100 parts per eight hour day. It uses a container that holds eight parts. It typically takes about six hours to round trip a container from one work center to the next and back again. Mejza also desires to hold 15 percent safety stock of this part in the system. How many containers should Mejza compressors be using?A: DT (1+S)/C = 100X6 (1+.15)/8 = 600(1.15)//.25

3. Jim Corner, owner of corner bike rentals wants to start analyzing his company’s quality. For each bike rental there are four types of customer complaints:

a. Bike not working properly, b. bike wrong size, c. bike uncomfortable, d. bike broken during operation During the past week, his company rented 280 bikes. He received 26 total complaints.

a. What is his company’s DPMO for the past week?

26/(4)(280) X 1,000,000 = 26/(1,120) X 1,000,000 = 23,214

b. What is their six sigma operating level? 3.5

 Number Standard Deviations above the mean Percent of Defect free output Defects per million 2 69.15 308,537 2.5 84.13 158,686 3 93.32 66,807 3.5 97.73 22,750 4 99.38 6,210 4.5 99.865 1,350 5 99.977 233 5.5 99.9968 32 6 99.99966 3.4

5. Through process measuring a number of pizza delivery times, mary janes pizzeria finds the mean of all samples to be 27.4 minutes, with an average sample range of 5.2 minutes. They tracked 4 deliveries per hour for 18 hours to obtain their samples.

a. is this an example of variable or attribute sampling data?

b. Find the UCL and LCL for both the x – and R-Charts.

7. Roberto’s steak house tracks customer complaints every day and then follows up with their customers to resolve problems. For the past 30 days, they received a total of 22 complaints from unhappy customers. Using this information, calculate

a. c

b. The 3 sigma control limits

RParslow_M444_M4_A4.3CPs Chapter 7 pg. 245-247 1. Given the following inventory information, perform an ABC analysis. ITEM NUMBER UNIT COST \$\$ ANNUAL USAGE (UNITS) TOTAL COST % OF TOTAL COST CATAGORY B8867 6.00 100 600 0% C J1252 5.25 6,500 34,125 24% A K9667 0.25 4,000 1,000 1% C L2425 1.00 1,500 1,500 1% C M4554 5.50 2,000 11,000 8% C T6334 70.00 500 35,000 25% A W9856 0.75 800 600 0% C X2215 1.50 8,000 12,000 8% C Y3214 32.00 1,000 32,000 23% A Y6339 4.00 3,500 14,000 10% B TOTAL 141,825 100% 2. Given the following inventory information, construct an: a. ABC Analysis by annual dollar usage b. ABC Analysis by current inventory value c. An ABC inventory matrix. Is the firm stocking the correct inventories? ITEM NUMBE R UNIT COST \$ ANNUAL USAGE (UNITS) CURRENT INVENTORY (UNITS) ANNUAL DOLLAR VALUE INVENTORY VALUE % B8867 6.00 100 8,000 600.00 48,000.00 0.34 J1252 5.25 6,500 120 34,125.00 630.00 0.00 K9667 0.25 4,000 1,000 1,000.00 250.00 L2425 1.00 1,500 375 1,500.00 375.00 M4554 5.50 2,000 500 11,000.00 2,750.00 T6334 70.00 500 800 35,000.00 56,000.00 W9856 0.75 800 20,000 60.00 15,000.00 X2215 1.50 8,000 2,000 12,000.00 3,000.00 Y3214 32.00 1,000 500 32,000.00 16,000.00 Y6339 4.00 3,500 125 14,000.00 500.00 TOTAL 141,285.00 142505.00 3. Given the following inventory information, construct an: a. ABC Analysis by annual dollar usage b. ABC Analysis by current inventory value c. An ABC inventory matrix. Is the firm stocking the correct inventories?
ITEM NUMBE R ITEM COST \$ ANNUAL USAGE (UNITS) ANNUAL DOLLAR USAGE \$ % OF TOTAL ANNUAL \$\$ Usage Classification by Annual \$\$ Usage A967 32.00 1 32.00 .02 A B886 6.00 100 600.00 .42 A C314 5.25 32 168.00 .12 C D879 12.50 54 675.00 .47 C E536 0.05 125 6.25 0.0 C F876 0.07 423 29.61 .02 C G112 0.12 500 60.00 .04 C H098 1.22 235 286.70 .20 C J125 5.25 6,500 34,125.00 23.74 C K966 0.25 4,000 1,000.00 .70 C L242 1.00 1,500 1,500.00 1.04 C M455 5.50 2,000 11,000.00 7.65 C N007 7.21 54 389.34 .27 C P231 5.25 32 168.00 .12 C Q954 3.25 25 81.25 .06 C T633 70.00 500 35,000.00 24.35 A W985 0.75 800 600.00 .42 B X221 1.50 8,000 12,000.00 8.35 C Y321 32.00 1,000 32,000.00 22.27 B Z633 4.00 3,500 14,000.00 9.74 C TOTAL 143,721.15 100 Item Number Unit cost \$ Current Inventory Units Current Inventory Value \$ %Total Inventory Value Total Inventory Value Annual Dollar Usage A967 32.00 4,500 144,000 48.40 A B886 6.00 8,000 48,000 16.13 A C314 5.25 115 603.75 .20 C D879 12.50 254 3,175.00 1.07 C E536 0.05 120 6.00 0.0 C F876 0.07 500 35.00 1.17 C G112 0.12 1,008 120.96 .04 C H098 1.22 750 915.00 .31 C
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RParslow_M444_M4_A4.3CPs
Chapter 7 pg. 245-247
1. Given the following inventory information, perform an ABC analysis.
ITEM
NUMBER UNIT
COST \$\$ B8867
J1252
K9667
L2425
M4554
T6334
W9856
X2215
Y3214...

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