Operations And Supply Management The Core 1st Edition Jacobs, F. Robert - Solutions

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State the types of data that would be carried in the bill of materials file and the inventory record file.
What are the sources of demand in an MRP system? Are these dependent or independent, and how are they used as inputs to the system?
“MRP just prepares shopping lists. It does not do the shopping or cook the dinner.”Comment.
Discuss the importance of the master production schedule in an MRP system.
Contrast the significance of the term lead time in the traditional EOQ context and in an MRP system.
What is the role of safety stock in an MRP system?
Many practitioners currently update MRP weekly or biweekly. Would it be more valuable if it were updated daily? Discuss.
Discuss the meaning of MRP terms such as planned order release and scheduled order receipt.
What is your recommendation to HP?
Evaluate the idea of supplying generic printers to the Europe DC and integrating the product by packaging the power supply and the instruction manual at the DC just prior to delivery to the European resellers. Focus on the impact on DC inventory investment in this analysis.
to the current policy of carrying one month’s average inventory at the DC.
Compare your results from question
Develop an inventory model for managing the DeskJet printers in Europe assuming that the Vancouver plant continues to produce the six models sold in Europe. Using the data in Exhibit 12.13, apply your model and calculate the expected yearly investment in DeskJet printer inventory in the Europe DC.
A local service station is open 7 days per week, 365 days per year. Sales of 10W40 grade premium oil average 20 cans per day. Inventory holding costs are $0.50 per can per year.Ordering costs are $10 per order. Lead time is two weeks. Backorders are not practical—the motorist drives away.a. Based
DAT, Inc., produces digital audiotapes to be used in the consumer audio division. DAT lacks sufficient personnel in its inventory supply section to closely control each item stocked, so it has asked you to determine an ABC classification. Here is a sample from the inventory records:AVERAGE AVERAGE
UA Hamburger Hamlet (UAHH) places a daily order for its high-volume items (hamburger patties, buns, milk, and so on). UAHH counts its current inventory on hand once per day and phones in its order for delivery 24 hours later. Determine the number of hamburgers UAHH should order for the following
It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established.You decide to test one item and choose Michelin tires, XW size 185 × 14 BSW.Aperpetual inventory system has been
Adistributor of large appliances needs to determine the order quantities and reorder points for the various products it carries. The following data refer to a specific refrigerator in its product line:Consider an even daily demand and a 365-day year.a. What is the economic order quantity?b. If the
After graduation, you decide to go into a partnership in an office supply store that has existed for a number of years. Walking through the store and stockrooms, you find a great discrepancy in service levels. Some spaces and bins for items are completely empty; others have supplies that are
Alpha Products, Inc., is having a problem trying to control inventory. There is insufficient time to devote to all its items equally. Here is a sample of some items stocked, along with the annual usage of each item expressed in dollar volume.a. Can you suggest a system for allocating control
Sarah’s Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory of this standard muffler. Use the following information to determine the best order size and the reorder point:
Famous Albert prides himself on being the Cookie King of the West. Small, freshly baked cookies are the specialty of his shop. Famous Albert has asked for help to determine the number of cookies he should make each day. From an analysis of past demand he estimates demand for cookies as Each dozen
Sally’s Silk Screening produces specialty T-shirts that are primarily sold at special events.She is trying to decide how many to produce for an upcoming event. During the event itself, which lasts one day, Sally can sell T-shirts for $20 apiece. However, when the event ends, any unsold T-shirts
University Drug Pharmaceuticals orders its antibiotics every two weeks (14 days) when a salesperson visits from one of the pharmaceutical companies. Tetracycline is one of its most prescribed antibiotics, with average daily demand of 2,000 capsules. The standard deviation of daily demand was
Daily demand for a product is 60 units with a standard deviation of 10 units. The review period is 10 days, and lead time is 2 days. At the time of review there are 100 units in stock. If 98 percent service probability is desired, how many units should be ordered?
Retailers Warehouse (RW) is an independent supplier of household items to department stores.RW attempts to stock enough items for a 98 percent service probability.A stainless steel knife set is one item it stocks. Demand (2,400 sets per year) is relatively stable over the entire year. Whenever new
Gentle Ben’s Bar and Restaurant uses 5,000 quart bottles of an imported wine each year.The effervescent wine costs $3 per bottle and is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $10 each time an order is placed, and holding costs are 20 percent
In the past, Taylor Industries has used a fixed–time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor involved in inventory
Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is $100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.65 per unit. To provide a 98 percent service
Item X is a standard item stocked in a company’s inventory of component parts. Each year the firm, on a random basis, uses about 2,000 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory.Every time an order is
Daily demand for a product is 100 units, with a standard deviation of 25 units. The review period is 10 days and the lead time is 6 days. At the time of review there are 50 units in stock.If 98. percent service probability is desired, how many units should be ordered?
The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The cost to place an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit. Find the reorder point necessary to
Demand for an item is 1,000 units per year. Each order placed costs $10; the annual cost to carry items in inventory is $2 each. In what quantities should the item be ordered?
Jill’s Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level.
Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolinear chips. The trip will take Data about two days.Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of five per day (seven
Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year.
Charlie’s Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every four weeks to take orders. Because the orders are shipped directly from Italy, they take three weeks to arrive.Charlie’s Pizza uses an
Dunstreet’s Department Store would like to develop an inventory ordering policy of a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets.Demand for white percale sheets is 5,000 per year. The store is
Ray’s Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,000 units. His cost to carry one unit is $100 per year per unit, and he has estimated that each order costs $25 to place.
Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from past history that an average of 25 customers(with a standard deviation of 15) cancel their reservation or do not show for the flight. Revenue from a ticket on the
The local supermarket buys lettuce each day to ensure really fresh produce. Each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week the supermarket can buy fresh lettuce for $4.00 a box. The lettuce is
Why is it desirable to classify items into groups, as the ABC classification does?
Which type of inventory system would you use in the following situations?a. Supplying your kitchen with fresh food.b. Obtaining a daily newspaper.c. Buying gas for your car.To which of these items do you impute the highest stockout cost?
“The nice thing about inventory models is that you can pull one off the shelf and apply it so long as your cost estimates are accurate.” Comment.
Discuss the assumptions that are inherent in production setup cost, ordering cost, and carrying costs. How valid are they?
What two basic questions must be answered by an inventory-control decision rule?
Under which conditions would a plant manager elect to use a fixed–order quantity model as opposed to a fixed–time period model? What are the disadvantages of using a fixed–time period ordering system?
Discuss the nature of the costs that affect inventory size.
Distinguish between in-process inventory, safety stock inventory, and seasonal inventory.
Distinguish between dependent and independent demand in a McDonald’s restaurant, in an integrated manufacturer of personal copiers, and in a pharmaceutical supply house.
Review your solution carefully and be prepared to defend it. Bring a printout of your solution to class.If you have a notebook computer, bring it to class with a copy of your completed spreadsheet. Your instructor may run a simulation in class using your solution.
Prepare an aggregate plan for the coming year, assuming that the sales forecast is perfect. Use the spreadsheet “Bradford Manufacturing” from this book’s DVD. In the spreadsheet an area has been designated for your aggregate plan solution. Supply the number of packaging lines to run and the
Currently the plant is running 10 lines with no overtime. Each line requires six people to run. For planning purposes, the lines are run for 7.5 hours each normal shift. Employees, though, are paid for eight hours’ work. It is possible to run up to two hours of overtime each day, but it must be
Helter Industries, a company that produces a line of women’s bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule, there are three temps on staff and 12 full-time employees. The temps can be hired when needed and can be used as
Develop a production schedule to produce the exact production requirements by varying the workforce size for the following problem. Use the example in the chapter as a guide (Plan 1).The monthly forecasts for Product X for January, February, and March are 1,000, 1,500, and 1,200, respectively.
Shoney Video Concepts produces a line of videodisc players to be linked to personal computers for video games. Videodiscs have much faster access time than tape. With such a computer/video link, the game becomes a very realistic experience. In a simple driving game where the joystick steers the
Alan Industries is expanding its product line to include new models: Model A, Model B, and Model C. These are to be produced on the same production equipment, and the objective is to meet the demands for the three products using overtime where necessary. The demand forecast for the next four
Old Pueblo Engineering Contractors creates six-month “rolling” schedules, which are recomputed monthly. For competitive reasons (they would need to divulge proprietary design criteria, methods, and so on), Old Pueblo does not subcontract. Therefore, its only options to meet customer
DAT, Inc., needs to develop an aggregate plan for its product line. Relevant data are Management prefers to keep a constant workforce and production level, absorbing variations in demand through inventory excesses and shortages. Demand not met is carried over to the following month.Develop an
Plan production for the next year. The demand forecast is spring, 20,000; summer, 10,000;fall, 15,000; winter, 18,000. At the beginning of spring you have 70 workers and 1,000 units in inventory. The union contract specifies that you may lay off workers only once a year, at the beginning of summer.
Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed for March will be held constant
Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workers at
For the solved problem, devise the least costly plan you can. You may choose your starting workforce level.
How would you apply yield management concepts to a barbershop? A soft drink vending machine?
Review the opening vignette. How does sales and operations planning help resolve product shortage problems?
In which way does the time horizon chosen for an aggregate plan determine whether it is the best plan for the firm?
How does forecast accuracy relate, in general, to the practical application of the aggregate planning models discussed in the chapter?
Define level scheduling. How does it differ from the pure strategies in production planning?
Distinguish between pure and mixed strategies in production planning.
What are the basic controllable variables of a production planning problem? What are the four major costs?
What are the major differences between aggregate planning in manufacturing and aggregate planning in services?
and 2. Use a new criterion that is calculated by taking the MAD and dividing by the average demand. This criterion is called the mean absolute percent error (MAPE) and gauges the error of a forecast as a percent of the average demand. What are the advantages and disadvantages of aggregating demand
Altavox is considering a new option for distributing the model VC202 where instead of using five vendors only a single vendor would be used. Evaluate this option by analyzing how accurate the forecast would be based on the demand aggregated across all regions.Use the model that you think is best
Next consider using a simple exponential smoothing model. In your analysis test two alpha values, .2 and .4.Use the same criteria for evaluating the model as in part 1. Assume that the initial previous forecast for the model using an alpha value of .2 is the past threeweek average. For the model
Consider using a simple moving average model. Experiment with models using five weeks’ and three weeks’ past data. The past data in each region is given below. Evaluate the forecasts that would have been made over the past 13 weeks using the mean absolute deviation and tracking signal as
Assume an initial starting Ft of 300 units, a trend of 8 units, an alpha of .30, and a delta of.40. If actual demand turned out to be 288, calculate the forecast for the next period.
After using your forecasting model for six months, you decide to test it using MAD and a tracking signal. Here are the forecast and actual demands for the six-month period:a. Find the tracking signal.b. Decide whether your forecasting routine is acceptable.
Actual demand for a product for the past three months wasa. Using a simple three-month moving average, make a forecast for this month.b. If 300 units were actually demanded this month, what would your forecast be for next month?c. Using simple exponential smoothing, what would your forecast be for
Your manager is trying to determine what forecasting method to use. Based upon the following historical data, calculate the following forecast and specify what procedure you would utilize.a. Calculate the simple three-month moving average forecast for periods 4–12.b. Calculate the weighted
The following table shows predicted product demand using your particular forecasting method along with the actual demand that occurred:a. Compute the tracking signal using the mean absolute deviation and running sum of forecast errors.b. Discuss whether your forecasting method is giving good
Historical demand for a product is as follows:a. Using a simple four-month moving average, calculate a forecast for October.b. Using single exponential smoothing with α = 0.2 and a September forecast = 65, calculate a forecast for October.c. Using simple linear regression, calculate the trend line
Assume that your stock of sales merchandise is maintained based on the forecast demand. If the distributor’s sales personnel call on the first day of each month, compute your forecast sales by each of the three methods requested here.a. Using a simple three-month moving average, what is the
In this problem, you are to test the validity of your forecasting model. Here are the forecasts for a model you have been using and the actual demands that occurred:Use the method stated in the text to compute the MAD and tracking signal. Then decide whether the forecasting model you have been
The following table contains the demand from the last 10 months:a. Calculate the single exponential smoothing forecast for these data using an α of .30 and an initial forecast (F1) of 31.b. Calculate the exponential smoothing with trend forecast for these data using an α of .30, a δ of .30, an
Harlen Industries has a simple forecasting model: Take the actual demand for the same month last year and divide that by the number of fractional weeks in that month. This gives the average weekly demand for that month. This weekly average is used as the weekly forecast for the same month this
A particular forecasting model was used to forecast a six-month period. Here are the forecasts and actual demands that resulted:
Here are the actual tabulated demands for an item for a nine-month period (January through September). Your supervisor wants to test two forecasting methods to see which method was better over this period.a. Forecast April through September using a three-month moving average.b. Use simple
Not all the items in your office supply store are evenly distributed as far as demand is concerned, so you decide to forecast demand to help plan your stock. Past data for legal-sized yellow tablets for the month of August area. Using a three-week moving average, what would you forecast the next
The tracking signals computed using past demand history for three different products are as follows. Each product used the same forecasting technique.Discuss the tracking signals for each and what the implications are.
Sales data for two years are as follows. Data are aggregated with two months of sales in each“period.”
The following tabulations are actual sales of units for six months and a starting forecast in January.a. Calculate forecasts for the remaining five months using simple exponential smoothing with α = 0.2.b. Calculate MAD for the forecasts.
Historical demand for a product isa. Using a weighted moving average with weights of 0.60, 0.30, and 0.10, find the July forecast.b. Using a simple three-month moving average, find the July forecast.c. Using single exponential smoothing with α = 0.2 and a June forecast = 13, find the July
Demand for stereo headphones and CD players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from
What implications do forecast errors have for the search for ultrasophisticated statistical forecasting models?
Discuss the basic differences between the mean absolute deviation and the standard deviation.
What are the main problems with using adaptive exponential smoothing in forecasting?
From the choice of simple moving average, weighted moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate? Why?
All forecasting methods using exponential smoothing, adaptive smoothing, and exponential smoothing including trend require starting values to get the equations going. How would you select the starting value for, say, Ft−1?
What strategies are used by supermarkets, airlines, hospitals, banks, and cereal manufacturers to influence demand?
Give some very simple rules you might use to manage demand for a firm’s product. (An example is “limited to stock on hand.”)

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Operations And Supply Management The Core 1st Edition Jacobs, F. Robert - Solutions

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