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introduction to materials management
Introduction To Materials Management 8th Global Edition J. R. Tony Arnold, Chapman, Stephen N., Lloyd M. Clive - Solutions
5.15. Using the following route information, open order information, and MRP planned orders, calculate the load on the work center.Routing: Part 123: Setup time = 2 standard hours Run time per piece = 3 standard hours per piece Part 456: Setup time = 3 standard hours Run time per piece = 1 standard
5.16. Complete the following load report and suggest possible courses of action.Week 18 19 20 21 Total Released Load 160 155 100 70 485 Planned Load 0 0 70 80 150 Total Load Rated Capacity 150 150 150 150 600(Over)AJnder Capacity
5.17. Back schedule the following shop order. All times are given in days. Move time between operations is 1 day, and wait time is 1 day. Due date is day 150. Assume orders start at the beginning of a day and finish at the end of a day.Operation Number Work Center Operation Time (days)Queue
5.18. Back schedule the following shop order. All times are given in days. Move time between operations is 1 day, and wait time is 1 day. Due date is day 200. Assume orders start at the beginning of a day and finish at the end of a day.Operation Number Work Center Operation Time (days)Queue
1. Discuss the nature and probable sources of the problem.Whenever Jason Roberts thought about going to work on Friday morning, he started to get a little knot in his stomach. Jason had recently accepted the job as operations manager for a small manufacturing company that specialized in a line o f
2. Examine the rough-cut capacity situation using the data Jason gathered. Discuss the results and how they are linked to the problems identified in question 1.Whenever Jason Roberts thought about going to work on Friday morning, he started to get a little knot in his stomach. Jason had recently
3. Use the information and your knowledge of the situation to develop a complete plan for Jason to use in the future. Part of this plan should be to build and demonstrate the approach to master scheduling for the data given in the case.Whenever Jason Roberts thought about going to work on Friday
6.1. A component made on a particular work center has a setup time of 50 minutes and a run time of 3 minutes per piece. An order for 200 is to be processed on 2 machines simultaneously. The machines can be set up at the same time. Calculate the elapsed operation time.
6.3. In problem 6.2, what percentage of the time is the order actually running?
6.4. An order for 50 of a product is processed on work centers A and B. The setup time on A is 30 minutes, and the run time is 4 minutes per piece. The setup time on B is 20 minutes, and the run time is 3 minutes per piece. Wait time between the two operations is 6 hours. The move time between A
6.5. In problem 6.4, what percentage of time is the order actually running?
6.6. Amalgamated Skyhooks, Inc., has an order for 100 Model SKY3 Skyhooks for delivery on day 100. The Skyhook consists of three parts. Components B and C form subassembly A. Subassembly A and component D form the final assembly. Following are the work centers and times for each operation. Using a
6.7. Micro Castings Limited has an order for its final assembly A, which is assembled using B1 and B2. B1 is made of C l, C2, and C3. B2 is made of C2 and C3. Material is available for all parts. Following are the description and standard time taken for each operation. Using a piece of graph paper,
6.8. An order for 200 of a product is processed on operation A and operation B. The setup time on A is 30 minutes, and the run time per piece is 5 minutes. The setup time on B is 50 minutes, and the run time is 7 minutes per piece. It takes 30 minutes to move a lot between A and B. Since this is a
6.9. Parent A requires 1 each of component B and C. Both B and C are processed on work center 20, which has an available capacity of 60 hours. The setup time for component B is 1.5 hours and the run time is 30 minutes per piece. For component C, setup time is 2.5 hours and the run time is 20
6.10. An order for 200 of a product is processed on operation 111. The setup time is 100 minutes, and the run time per piece is 5 minutes. Since this is a rush order, it is to be split into two lots of 100 each and run on two machines in the work center. The machines can be set up simultaneously.a.
6.11. In problem 6.10, what would be the reduction in manufacturing lead time if the second machine could not be set up until the setup was completed on the first machine?
6.12. An order for 100 of a product is run on work center 10. The setup time is 1 hour, and the run time is 5 minutes per piece. Since the order is a rush and there are two machines in the work center, it is decided that the order will be split and run on both machines. Calculate the manufacturing
6.13. In problem 6.12, what would be the manufacturing lead time if the second machine could not be set up until the setup on the first machine was completed? Would there be any reduction in manufacturing lead time?
6.14. Complete the following input/output report. What are the planned and actual backlogs at the end of period?Period 1 2 3 4 Total Planned Input 35 38 36 39 Actual Input 33 33 31 40 Cumulative Variance Planned Output 40 40 40 40 Actual Output 38 35 40 38 Cumulative Variance Planned Backlog 32
6.15. Complete the following input/output report. What is the actual backlog at the end of period 5?Period 1 2 3 4 5 Total Planned Input 78 78 78 78 78 Actual Input 84 80 78 82 80 Cumulative Variance Planned Output 80 80 80 80 80 Actual Output 85 83 76 82 84 Cumulative Variance Planned Backlog 45
6.16. Complete the following table to determine the run sequence for each of the sequencing rules.Job Process Time (days)Arrival Date Due Date Operation Due Date Sequencing Rule FCFS EDD ODD SPT A 5 123 142 132 B 2 124 144 131 C 3 131 140 129 D 6 132 146 135
6.17. Jobs A, B, and C are in queue at work center 10 before being completed on work center 20. The following information pertains to the jobs and the work centers. For this problem, there is no move time. Today is day 1. If the jobs are scheduled by the earliest due date, can they be completed on
6.18 Today’s date is 150. Orders A, B, and C have the following due dates and lead time remaining. Calculate the actual time remaining and the critical ratio for each.Lead TimeActual TimeOrderDue DateRemaining (days)Remaining (days)CRA16020B16520C17520CASE
1. With this information, Justin calculated the total standard time required to be within the 320 hours available. Is he correct? Calculate the time required and check the accuracy of his calculation.No matter how many times Justin Wang, the master scheduler for Johnston Products, tried, he
2. List the areas you think are causing trouble in this facility.No matter how many times Justin Wang, the master scheduler for Johnston Products, tried, he couldn’t seem to get it through people’s minds. They kept trying to “front load” the production schedule by attempting to catch up
3. Develop a plan to deal with the situation and try to get the production schedule back under control under the constraints listed.No matter how many times Justin Wang, the master scheduler for Johnston Products, tried, he couldn’t seem to get it through people’s minds. They kept trying to
1. Using the critical ratio rule, establish the priority for the eight jobs.John Burton was not a happy man. He was a supervisor for the Crofts Printing Company, having been recently promoted from lead printer. While he felt very comfortable with his knowledge and success in the printing business,
2. Use a chart to load the operation according to the priority rule established. In otherwords, load the most important job in all three work centers, then the next mostimportant, and so forth. This is the method that John used.John Burton was not a happy man. He was a supervisor for the Crofts
3. Analyze John’s approach and try to determine if he has a problem, and if he doesdetermine the source of the problem.4. Try to provide a solution to John that will ease the problem, and perhaps eliminate it.John Burton was not a happy man. He was a supervisor for the Crofts Printing Company,
1. What is the standard cost of the K-line product?Jim Hartough was not in a good mood. He worked his way through the ranks when supervisors did supervision and workers did what they were told. He was now faced with the fact that the new president of Melrose products was one of these
2. What specific steps would you undertake to make the self-directed teams? How, specifically, would you deal with the cost and time standard issues?Jim Hartough was not in a good mood. He worked his way through the ranks when supervisors did supervision and workers did what they were told. He was
3. Do you agree with Cindy? Do you agree with Jim? Is there some other alternative approach that might be better in this situation? Explain.Jim Hartough was not in a good mood. He worked his way through the ranks when supervisors did supervision and workers did what they were told. He was now faced
4. What do you do with the supervisor in this situation? Be specific in your approach.Jim Hartough was not in a good mood. He worked his way through the ranks when supervisors did supervision and workers did what they were told. He was now faced with the fact that the new president of Melrose
5. How do you deal with Jim? Develop a specific plan to deal with a situation such as the one described.6. Are self-directed work teams the answer? Where should or shouldn’t they be used. Discuss the pros and cons of such teams and where, or where not, they should be used, and how they would be
1. What are the five objectives of purchasing?
2. List the seven steps in the purchasing cycle.
7. Name two sources of specifications.
10. What are the advantages of using standard specifications?
11. Why is it important to select the right supplier and to maintain a relationship with that supplier?
12. Name and describe the three types of sourcing.
13. Describe the factors that should be used in selecting a supplier.
14. What is the bullwhip concept?
16. What are five savings that can result from adopting a supply chain management approach?
18. Describe which of the 3 Rs has the most beneficial impact on the environment.
7.1. An overhead (fixed) cost of $7000 and a variable unit cost of $5.50 per unit are required to make a particular component. What is the total cost and the average cost of producing a lot of 2000? If the selling price is $12 per unit, what is the break-even point?
7.2. A company has used competitive bidding to select a supplier for janitorial services. Based on these ratings from the supplier assessment, which supplier appears to be the best?Category Weight Supplier A Rating Supplier B Rating Supplier C Rating Quality Systems 40%3 34 Financial Stability 25%2
7.3. The owner of a manufacturing business has patented a new device. Before trying to commercialize the device, the owner wants reasonable assurance of success. The variable cost is estimated at $8 per every unit produced and sold. Fixed costs are about $60,000 per year. If the selling price is
1. Perform a supplier rating analysis for the situation. Include at least 10 factors and 4 possible locations.“Let’s party!” is still echoing in your head as you leave your Principles of Purchasing class. Again you ask yourself, “Why did I ever let myself run for class president?” Most of
2. Make the selection as indicated by the analysis.“Let’s party!” is still echoing in your head as you leave your Principles of Purchasing class. Again you ask yourself, “Why did I ever let myself run for class president?” Most of the people in the class were good, level-headed
3. Discuss why the analysis led to your selection in step 2 and whether you would change any of the criteria or weights.“Let’s party!” is still echoing in your head as you leave your Principles of Purchasing class. Again you ask yourself, “Why did I ever let myself run for class
1. Prepare a presentation to be used in class to make a selection for a year-end get-together.“Let’s party!” is still echoing in your head as you leave your Principles of Purchasing class. Again you ask yourself, “Why did I ever let myself run for class president?” Most of the people in
2. Lead a discussion to determine at least four possible locations and 10 factors.“Let’s party!” is still echoing in your head as you leave your Principles of Purchasing class. Again you ask yourself, “Why did I ever let myself run for class president?” Most of the people in the class
3. Have the class agree on weighting factors for each criteria.“Let’s party!” is still echoing in your head as you leave your Principles of Purchasing class. Again you ask yourself, “Why did I ever let myself run for class president?” Most of the people in the class were good,
4. Perform the calculations and make the selection.“Let’s party!” is still echoing in your head as you leave your Principles of Purchasing class. Again you ask yourself, “Why did I ever let myself run for class president?” Most of the people in the class were good, level-headed
5. Discuss with the class why the analysis led to the selection in step 4 and whether you would change any of the criteria or weights.“Let’s party!” is still echoing in your head as you leave your Principles of Purchasing class. Again you ask yourself, “Why did I ever let myself run for
6. Ask the class members whether they feel more in agreement with the decision after going through this process.“Let’s party!” is still echoing in your head as you leave your Principles of Purchasing class. Again you ask yourself, “Why did I ever let myself run for class president?” Most
1. What additional information should Juan gather to help him develop his plan?Explain how you would use the information.When Juan Hernandez was first given the position of head buyer for the Connery Manufacturing Company, he visualized the job as merely an expansion of his old position as a
2. Once you know the information, develop a plan for Juan.When Juan Hernandez was first given the position of head buyer for the Connery Manufacturing Company, he visualized the job as merely an expansion of his old position as a commodity buyer. He had no formal training when he took the position,
1. What is demand management? What functions does it include?
2. Why must we forecast?
3. What factors influence the demand for a firm’s products?
8. Name and describe the three principles of data collection.
10. Describe and give the advantages and disadvantages of (a) moving averages and (b) exponential smoothing.
11. What is a seasonal index? How is it calculated?
12. What is meant by the term deseasonalized demand?
13. What is meant by the term tracking the forecast! In which two ways can forecasts go wrong?
14. What is bias error in forecasting? What are some of the causes?
15. What is random variation?
16. What is the mean absolute deviation (MAD)? Why is it useful in forecasting?
17. What action should be taken when unacceptable error is found in tracking a forecast?
18. What is the P/D ratio? How can it be improved?
19. How would a manufacturer with a P/D ration less than 1 schedule production? How would this affect inventories
20. What might it mean if a forecasting method has no bias yet has a large MAD?
8.1 Over the past three months, the demand for a product has been 165, 139, and 137. Calculate the three-month moving average forecast for month 4. If the actual demand in month 4 is 158, calculate the forecast for month 5.
8.2 Given the following data, calculate the three-month moving average forecasts for months 4, 5, 6, and 7. 7 Month Actual Demand Forecast 2 40 55 35 3 38 4 32 5 36 6 45
8.4 ABC Baking Company is planning to purchase ingredients for bread production. The bread demand forecast for last week was 22,000 loaves, but only 21,000 loaves were actually demanded. What would ABC’s forecast be for this week using exponential smoothing with α = 0.10?
8.5 Using simple exponential smoothing, what would your forecast for this month if the forecast and the actual demand for the last month is 422 and 325, respectively? Take α = 0.20.
8.6. A computer software firm experienced the following demand for its accounting software package. Develop an exponential smoothing forecast using α = 0.40. Period Actual Demand Forecast Demand 1 56 56 2 61 3 55 55 4 70 70 5 66 6
8.9. If the average demand for the first quarter is 120 and the average demand for all quarters is 180, what is the seasonal index for the first quarter?
8.10. Using the data in problem 8.9, if the forecast for next year is 600, calculate the forecast for first quarterly demand next year.
8.11. A firm uses exponential smoothing to forecast its demand. For May, the deseasonalized forecast was 1100 units, and the actual seasonal demand was 1300 units. The seasonal index for May is 1.3 and for June is 0.8. If α is 0.2, calculate the seasonal forecast for June.
8.12. Given the following average demand for each month, calculate the seasonal indices for each month.Note that your answer, if done correctly, should have all the seasonal indices add up to the number of periods in the entire season, in this case 12. Month Average Demand Seasonal Index January 30
8.13. Using the data in problem 8.12 and the seasonal indices you have calculated, calculate expected monthly demand if the annual forecast is 2000 units. Month Seasonal Index Forecast January February March April May June July August September October November December
8.14. I f the actual demand for July is 1650 units and the seasonal index is 1.5, what would be the deseasonalized July demand?
8.15. Calculate the deseasonalized demands for the following: Quarter Actual Demand Seasonal Index. Deseasonalized Demand 1 156 0.55 2 261 1.23 3 155 1.06 4 170 0.87 Total
8.17. Pizza Delight has randomly selected six weekdays during the past month and recorded orders for pizza at four different time periods per day as follows.a. Calculate the seasonal index for each of the time periods.b. If the forecast demand for the seventh day is 262 units, find the forecast for
8.18. Given the following forecast and actual demand, calculate the mean absolute deviation. Period Forecast Actual Demand Absolute Deviation 110 85 2 110 105 3 110 120 4 110 100 5 110 90 Total
8.19. For the following data, calculate the mean absolute deviation. Period Forecast Actual Demand Absolute Deviation 1 100 105 2 105 95 3 110 90 4 115 130 5 120 100 6 125 120 Total 675 650
1. Plot the data and describe what you see. What does it mean and how would you use the information from the plot to help you develop a forecast?Jan Northcutt, owner of Northcutt Bikes, started business in 1995. She noticed the quality of bikes she purchased for sale in her bike shop declining
2. Use at least two different methodologies to develop as accurate a forecast as possible for the demand. Use each of those methods to project the next four months demand.Jan Northcutt, owner of Northcutt Bikes, started business in 1995. She noticed the quality of bikes she purchased for sale in
3. Which method from question 2 is “better”? How do you know that?Jan Northcutt, owner of Northcutt Bikes, started business in 1995. She noticed the quality of bikes she purchased for sale in her bike shop declining while the prices went up. She also found it more difficult to obtain the
4. How, if at all, could we use Jan’s knowledge of the market to improve the forecast? Would it be better to forecast in quarterly increments instead of monthly? Why or why not?Jan Northcutt, owner of Northcutt Bikes, started business in 1995. She noticed the quality of bikes she purchased for
5. Are there other possible approaches that might improve Jan’s operation and situation? What would they be and how could they help?Jan Northcutt, owner of Northcutt Bikes, started business in 1995. She noticed the quality of bikes she purchased for sale in her bike shop declining while the
6. Has Jan’s operation grown too large for her to control well? Why or why not? What would you suggest she do? What additional information would you suggest she look for to help her situation?Jan Northcutt, owner of Northcutt Bikes, started business in 1995. She noticed the quality of bikes she
1. Try to help Jack out with a short-term solution. Help him come up with how much steel to buy—enough to cover production of how many V27 gears over the next year? After you come up with a number, justify your solution. Be as comprehensive as possible in the justification—include all possible
2. Develop a recommendation for Jack and the Hatcher Gear Company to use in the long run, specifically to try to minimize the current dilemma from occurring again.CompanyJack Fielding found himself in a real dilemma when the sales and marketing department presented him with the annual sales demand
3. Suppose Macarry’s Bicycle managers discover that a major competitor has had to shut down their production for the next three months due to a major fire. The Macarry’s managers fully expect that many of the competitor’s customers will turn to Macarry’s Bicycles to fill their orders during
2. Once you have completed the tables, examine the list of orders for this model bicycle and determine specifically what information should be given to the perspective customer. For example, if the order request was for 40 bicycles (with defined options) in week 4 and it appears that only 32 could
1. Fill in the master schedules listed below, taking the data from the above tables and adding row values for projected inventory and available to promise (ATP). Assume there is no demand time fence for this data.Here are the orders to evaluate. Again you are reminded to treat these independently.
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