a. Initially, assume that Phil wants to minimize his inventory requirements. Assume that each order will...

Transcribed Image Text:

a. Initially, assume that Phil wants to minimize his inventory requirements. Assume that each order will be only for what is required for a single period. Calculate the net requirements and planned order releases for the gear boxes and input shafts. Assume that lot sizing is done using lot-for-lot (L4L). (Leave no cells blank - be certain to enter "0" wherever required.) Gear Box Requirements Week: Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipt Planned order release 2 3 5 6 7 8 9 10 11 12 13 8 10 0 18 24 14 0 8 2 15 Input Shaft Requirements Week: Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipt Planned order release 2 3 6 7 8 9 10 11 12 Phil would like to consider the costs that his accountants are currently using for inventory carrying and setup for the gear boxes and input shafts. These costs are as follows: = PART COST Gear Box Setup $120/order Input Shaft Inventory carrying cost $2/unit/week Setup = $60/order Inventory carrying cost = $1/unit/week Suppose least-total-cost lot sizing is to be used. Using the planned order receipts shown below, complete the remainder of the gear box and input shaft tables. (Leave no cells blank - be certain to enter "0" wherever required.) Gear Box Requirements Week: 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 13 6 8 10 18 24 14 8 2 15 Scheduled receipts Projected available balance Net requirements Planned order receipt Planned order release Input Shaft Requirements Week: Gross requirements Scheduled receipts Projected available balance Net requirements 1 2 3 4 5 6 7 8 6 10 11 12 Planned order receipt 0 0 0 82 0 0 0 50 0 0 0 Planned order release c. What are the savings with the new schedule? Assume inventory is valued at the end of each week. Cost of the schedule from part (a) Setup Cost Inventory Total Gear box Input shaft Total cost Cost of the schedule using least-total-cost lot sizing. Setup Cost Inventory Total Gear box Input shaft Total cost Savings with the new schedule. Savings a. Initially, assume that Phil wants to minimize his inventory requirements. Assume that each order will be only for what is required for a single period. Calculate the net requirements and planned order releases for the gear boxes and input shafts. Assume that lot sizing is done using lot-for-lot (L4L). (Leave no cells blank - be certain to enter "0" wherever required.) Gear Box Requirements Week: Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipt Planned order release 2 3 5 6 7 8 9 10 11 12 13 8 10 0 18 24 14 0 8 2 15 Input Shaft Requirements Week: Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipt Planned order release 2 3 6 7 8 9 10 11 12 Phil would like to consider the costs that his accountants are currently using for inventory carrying and setup for the gear boxes and input shafts. These costs are as follows: = PART COST Gear Box Setup $120/order Input Shaft Inventory carrying cost $2/unit/week Setup = $60/order Inventory carrying cost = $1/unit/week Suppose least-total-cost lot sizing is to be used. Using the planned order receipts shown below, complete the remainder of the gear box and input shaft tables. (Leave no cells blank - be certain to enter "0" wherever required.) Gear Box Requirements Week: 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 13 6 8 10 18 24 14 8 2 15 Scheduled receipts Projected available balance Net requirements Planned order receipt Planned order release Input Shaft Requirements Week: Gross requirements Scheduled receipts Projected available balance Net requirements 1 2 3 4 5 6 7 8 6 10 11 12 Planned order receipt 0 0 0 82 0 0 0 50 0 0 0 Planned order release c. What are the savings with the new schedule? Assume inventory is valued at the end of each week. Cost of the schedule from part (a) Setup Cost Inventory Total Gear box Input shaft Total cost Cost of the schedule using least-total-cost lot sizing. Setup Cost Inventory Total Gear box Input shaft Total cost Savings with the new schedule. Savings