Questions and Answers of Introduction Materials Management

What information is needed to develop a make-to-stock production plan?
Describe four conditions under which a firm would make-to-stock or make-to-order.
What is a hybrid strategy? Why is it used?
Describe each of the four basic strategies used in developing a production plan. What are the advantages and disadvantages of each?
What are five typical characteristics of the production planning problem?
On what basis should product groups (families) be established?
When making a production plan, why is it necessary to select a common unit or to establish product families?
In the short run, how can capacity be changed?
What two changing conditions led to the development of ERP systems?
What is MRP II?
What is the difference between strategic business planning and sales and operations planning (SOP)? What are the major benefits of SOP?
Describe the relationship among the production plan, the master production schedule, and the material requirements plan.
Describe the responsibilities and inputs of the marketing, production, finance, and engineering departments to the strategic business plan.
Describe each of the following plans in terms of their purpose, planning horizon, level of detail, and planning cycle:a. Strategic plan.b. Business plan.c. Production plan.d. Master production
Define capacity and priority. Why are they important in production planning?
The Williams 3D printer company was experiencing growing pains early in 2015. Jasper Williams had developed his own unique design for making a 3D printer with this relatively new technology that was
What are the four questions a good planning system must answer?
1. Using the data, develop a level production plan. How much extra cost (inventory and HR costs) are involved in this plan? What additional costs (both financial and nonfinancial) might be involved
Give an example of a postponement activity.
Which manufacturing strategies are used in a fast-food business? How does this affect the lead time from the customers’ point of view?
Describe at least three supply chains that provide products to your school book store. Do they use cooperative supply chain methods to help reduce their costs?
A computer carrying case and a backpack are familiar items to a student of manufacturing planning and control. Discuss the manufacturing planning and control activities involved in producing a
What are metrics? What are their uses?
Why can materials management be considered a balancing act?
What are the six activities involved in the physical supply/distribution system?
Name and describe the inputs to a manufacturing planning and control system.
Name and describe the three primary activities of manufacturing planning and control.
What is the purpose of materials management?
Describe how the objectives of marketing, production, and finance are in conflict over customer service, disruption to production, and inventories.
What are the objectives of production? How can these objectives be met?
What are the objectives of finance? How can these objectives be met?
What is the objective of marketing? What three ways will help it achieve this objective?
What are the four objectives of a firm wishing to maximize profit?
Name and describe the three main divisions of supply, production, and distribution systems.
What must manufacturing management do to manage a process or operation? What is the major way in which management plans and controls?
What is a supply chain? Describe five important factors in supply chains.
Describe the five primary manufacturing strategies. How does each affect delivery lead time?
What are an order qualifier and an order winner?
Name and describe four major factors affecting operations management.
What is value added, and how is it achieved?
1. What are the key issues in this case? In other words, analyze the case to try to determine the true problems from the symptoms of those problems. How do these issues relate to the issue of
What is wealth, and how is it created?
A pallet manufacturer has measured the output of a board cutting operation. The boards have a specification of 24 inches ±0.5 inch. A sample of the boards is shown below. Calculate the capability of
Create a House of Quality for a product familiar to you and complete the House of Quality form. Pick at least three different brands of the product to make the competitive comparison. List at least
A company fills plastic bottles with 10 ounces of shampoo. The tolerance is ±0.1 ounce. The process has a standard deviation of 0.02 ounce. For the following situations, calculate the Cpk and
In problem 16.6, what is the Cpk whena. The process is centered on 0.75? Is the process capable?b. The process is centered on 0.74? Is the process capable?In ProblemThe specification for the diameter
If, in problem 16.5, the process is improved so the standard deviation is 0.0035, is the process capable now?In ProblemThe specification for the diameter of a hole is 0.80 inch ±0.020 inch. The
The specification for the diameter of a hole is 0.80 inch ±0.020 inch. The standard deviation of the drill press is 0.007 inch. Using Cp, calculate whether the process is capable or not.
The specification for the weight of a chemical in a compound is ±0.06. If the standard deviation of the weighing scales is 0.02, is the process considered capable?
The specification for the thickness of a piece of steel is 0.5 inch ±0.05 inch. The standard deviation of the band saw is 0.015. Using Cp, calculate whether the process is capable or not.
In problem 16.1, if the tolerance changes to ±0.0004 inch, approximately what percentage of the shafts will be within tolerance?In ProblemThe specification for the length of a shaft is 12 inches
The specification for the length of a shaft is 12 inches ±0.001 inch. If the process standard deviation is 0.00033, approximately what percentage of the shafts will be within tolerance?
A company produces a line of golf putters composed of three models. The demand for model A is 500 per month, for B is 400, and for C is 300. What would be the mixed-model sequence if some of each
a. Which of the following items are within tolerance?b. What is the percent accuracy by item? Part Shelf Inventory Within Tolerance? Number Count Record Difference % Difference Tolerance 635 A 650
Parent S requires three of component T and two of component U. Both T and U are run on work center 30. Setup time for T is 7 hours, and run time is 0.1 hour per piece. For component U, setup time is
Parent W requires one of component B and two of component C. Both B and C are run on work center 10. Setup time for B is 2 hours, and run time is 0.1 hour per piece. For component C, setup time is 2
Bill builds benches in a small shop and he plans to operate five 8-hour days per week. Each bench has two ends and a top. It takes 5 minutes to cut and sand each end and 2 minutes to make each top.
A company has an annual demand for a product of 2000 units, a carrying cost of $20 per unit per year, and a setup cost of $100. Through a program of setup reduction, the setup cost is reduced to $20.
In problem 15.1, if the annual carrying cost is 18% per unit, what will be the annual savings in carrying cost?In problem 15.1A company carries 10 items in stock, each with an economic order quantity
A company carries 10 items in stock, each with an economic order quantity of $20,000. Through a program of component standardization, the 10 items are reduced to 5. The total annual demand is the
A university registration process can register a person every 4 minutes. If there are an average of 12 people in line for the registration, how long will each person have to wait in line?
A process can produce a final product at the rate of 2 products per minute. If an individual product takes 30 minutes to pass through the process, what is the inventory of products in the process at
A process has a production rate of 30 units per hour. If it takes 50 minutes for a single unit to be completed in the process, what is the inventory of units in the process?
The Light Company is planning on producing a new type of light shade, the parts for which may be made or bought. If purchased, they will cost $2 per unit. Making the parts on a semiautomatic machine
Given the following costs, which process should be used for an order of 400 pieces of a given part? What will be the unit cost for the process selected? Process A Process B Buy Setup Tooling
Bananas are on sale at the Cross Towne store for 79¢ per pound. They normally sell for 99¢ per pound at your corner store. If round-trip bus fare costs $3.60 to the Cross Towne store, is it worth
A manufacturer has a choice of purchasing and installing a heat-treating oven or having the heat treating done by an outside supplier. The manufacturer has developed the following cost estimates:a.
A process costs $200 to set up. The run time is 5 minutes per piece and the run cost is $30 per hour. Determine the following:a. The fixed cost.b. The variable cost.c. The total cost and unit cost
A company can ship LTL direct to customers in city A or use a public warehouse located in city B. It has determined the following data.Cost per pound for shipping LTL to city A is $0.70 + $0.30 per
Suppose the company in problem 13.8 had another market area located between the parent plant and the proposed distribution center. The LTL costs from the plant to that market are $35 per cwt. The
A company has a central supply facility and a distribution center located 400 miles away. The central supply product cost is $75, TL transportation rates from central supply to the DC are $60 per
A company ships LTL to customers in a market in the Midwest at an average cost of $40 per cwt. It proposes establishing a distribution center in this market. TL shipment costs to the DC would be $20
A company in Calgary serves a market in the northwestern United States. Now it ships LTL at an average cost of $30 per unit. If the company establishes a distribution center in the market, it
A company processes feathers and ships them loose in a covered truck. The line haul cost for an average shipment is $600, and the truck carries 2000 pounds of feathers. A bright new graduate has just
In problem 13.4, if the company can ship the units unassembled, it can ship 750 units in a truck. What is the line haul cost per unit now?
A company ships a particular product to a market located 1500 miles from the plant at a cost of $4.50 per mile. Normally it ships 500 units at a time. What is the line haul cost per unit?
For a given commodity, the line haul cost is $13 per mile. For a trip of 200 miles and a shipment of 300 lbs., what is the cost per pound? If the shipment is increased to 500 lbs., what is the saving
A company manufactures component parts for machine tools in North America and ships them to Southeast Asia for assembly and sale in the local market. The components are shipped by sea, transit time
A company normally ships to a customer by rail at a cost of $500 per load. The transit time is 14 days. The goods can be shipped by truck for $700 per load and a transit time of 4 days. If transit
A company does an ABC analysis of its inventory and calculates that out of 10,000 items, 19% can be classified as A items, 30% as B items, and the remainder as C items. A decision is made that A
a. Which of the following items are within tolerance?b. What is the percent accuracy by item? Within Part Shelf Inventory Record Tolerance Tolerance? Number Count Difference % Difference 75 +3% A 80
A company wants to store the following seven SKUs so there is 100% accessibility. Items are stored on pallets that are stored four high.a. How many pallet positions are needed?b. What is the cube
A company wishes to store the following SKUs so there is 100% accessibility. The items are stored on pallets that can be stacked three high.a. How many pallet positions are needed?b. What is the cube
A company has a warehouse with the dimensions shown in the following diagram. How many pallets measuring 48″ × 40″ can be stored three high if there is to be a 2″ space between the pallets? 60
A company has an area for storing pallets as shown in the following diagram. How many pallets measuring 48″ × 40″ can be stored three high if there is a 2″ space between the pallets? 200' 4'
A company has 6500 cartons to store on pallets. Each pallet takes 30 cartons, and the cartons are stored four high. How many pallet positions are needed?
A company wants to store an SKU consisting of 5000 cartons on pallets, each containing 30 cartons. They are to be stored three high in the warehouse. How many pallet positions are needed?
A regional warehouse orders items once a week from a central warehouse. The truck arrives 3 days after the order is placed. The warehouse operates 5 days a week. For a particular brand and size of
A firm orders a number of items from a regional warehouse every 2 weeks. Delivery takes 1 week. Average demand is 200 units per week, and safety stock is held at 2 weeks’ supply.a. Calculate the
A company that manufactures snow shovels has one plant and two distribution centers (DCs). Given the following information for the two DCs, calculate the gross requirements, projected available, and
A company that manufactures stoves has one plant and two distribution centers (DCs). Given the following information for the two DCs, calculate the gross requirements, projected available, and
The annual demand for an item is 10,000 units, the order quantity is 250, and the service level is 90%. Calculate the probable number of stockouts per year.
If in problem 11.15, management said that it is considering increasing the service level to one stockout every 2 years, what would the new safety stock be? If the cost of carrying inventory on this
Management has stated that it will tolerate one stockout per year. The forecast of annual demand for a particular SKU is 100,000 units, and it is ordered in quantities of 10,000 units. The lead time
The safety stock on an SKU is set at 220 units. The supplier says it can reduce the lead time from 8 to 6 weeks. What should be the new safety stock?
A company stocks an SKU with a weekly demand of 600 units and a lead time of 4 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 100 and the order quantity is 2500
A company stocks an SKU with a weekly demand of 225 units and a lead time of 3 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 175 and the order quantity is 800
For an SKU, the standard deviation of demand during the lead time is 150 units, the annual demand is 10,000 units, and the order quantity is 750 units. Management says it will tolerate only one
The standard deviation of demand during the lead time is 100 units.a. Calculate the safety stock required for the following service levels: 75%, 80%, 85%, 90%, 95%, and 99.99%.b. Calculate the change
If sigma is 130 units, and the demand during the lead time is 250 units, calculate the safety stock and order point for:a. A 50% service level.b. An 85% service level.Use the table in Figure 11.5 as

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