#3 - BUS 370 Fall Chapter 10 - Sales and Operations Planning Use the following information for questions 10.1.a-b 10.1 Planning Values Gauge Set A20 B30 C40 Product Mix 45% 35% 20% Machine Hours per Unit 35 50 80 Labor Hours per Unit 10 15 30 10.1.a The weighted planning values for Machine Hours per gauge set is: a. 49.25 b. 59.25 c. 69.25 d. 79.25 10.1.b The weighted planning values for Labor Hours per gauge set is: a. 12.75 b. 13.75 c. 14.75 d. 15.75 10.2 Top Down Planning - Level and Chase Strategies Use the following information for questions 10.2.a-b Agreed upon demand must be met for the upcoming 4 month period with no back-orders. The average unit requires 20 worker hours. Each worker works 140 hours per month (can make 7 units per month); Hiring cost = $550; Firing Cost = $300; Inventory Holding Cost = $7/unit/month. Do not consider production costs. Fill in the chart below using a level strategy: Starting Workforce = 27 Starting Inventory = 50 No ending workforce requirements Demand in Workers needed Actual Actual Ending Month Demand Worker Hours to meet Prod Plan Employees Production Firings Hirings Inventory 1 175 2 210 3 196 4 203 10.2.a The total cost for the level strategy is: a. $2,095 b. $2,195 c. $2,295 d. $2,395 Fill in the chart below using a chase strategy: Starting Workforce = 27 Starting Inventory = 50 No ending workforce requirements Demand in Workers needed Actual Actual Ending Month Demand Worker Hours to meet Prod Plan Employees Production Firings Hirings Inventory 1 175 2 210 3 196 4 203 10.2.b The total cost for the chase strategy is: a. $5,700 b. $5,800 c. $5,900 d. $6,000 Chapter 11 - Inventory 11.1 Mimi runs a mail order business for troll figurines. Annual demand for the figurines is 4000; the holding cost is $1.00 per figurine; the cost to place an order is $20. What is the economic order quantity (round to the nearest whole number)? 11.1 The economic order quantity (EOQ), rounded to the nearest whole number is: a. 100 b. 200 c. 300 d. 400 11.2 The supplier of troll figurines has agreed to offer Mimi a discount from the current price of $6 per troll down to $5.80 per troll if she will order in quantities of 1000. How many units should Mimi order? (Use information from question 11.1) 11.2 The number of units Mimi should order is: a. 400 b. 600 c. 800 d. 1000 11.3 Jimmy's delicatessen sells large jars of pickles. Every Monday he checks his stock of pickles and orders from his supplier. Two days later, the supplier delivers his order. The average daily demand is 15 jars of pickles and the standard deviation of demand over 9 days, which covers the reorder period (7 days) and lead time (2 days), is 35 jars. Jimmy wants to be in stock 97.725% of the time. What is the restocking level? 11.3 The Restocking Level is: a. 175 b. 185 c. 195 d. 205 11.4. You are the manager of the TV department at BetterBuy. You are responsible for ordering plasma TVs and want to have a 99.865% in stock level. The average daily demand is 8 units, the average lead-time is 6 days, standard deviation of demand is 2 units per day, and the standard deviation of lead time is 3 days. What is the reorder point? 11.4 The Reorder Point is: a. 121 b. 123 c. 125 d. 127 11.5. You are selling T-Shirts at tonight's rock concert. At a typical rock concert, like tonight, you sell about 750 T-shirts at $25 each. Standard deviation of demand is 125 TShirts. The date of the concert is on the shirt. Any you don't sell at the concert, you can sell afterward, but only for $5. Each T-shirt costs you $10 to buy from your supplier. If you want to make the most money, how many T-shirts do you buy and bring to the concert? 11.5 The number of T-shirts is: a. 804 b. 834 c. 864 d. 894 Chapter 12 - Managing Production 12.1 Complete the master production schedule (MPS) record shown below. On hand inventory at end of Week 1 200 Week Forecasted Demand Booked Orders Projected ending Inventory Master Production Schedule Available-to-Promise 12.1.a ATP Week 2 is: a. 148 b. 158 c. 168 d. 178 2 50 70 3 50 62 4 50 40 5 60 38 150 6 70 40 7 70 32 200 12.1.b ATP Week 5 is: a. 70 b. 80 c. 90 d. 100 12.1.c Inventory Week 7 is: a. 128 b. 148 c. 168 d. 188 12.2. Complete the master production schedule (MPS) record shown below. On hand inventory at end of Week 1 Week Forecasted Demand Booked Orders Projected Ending Inventory Master Production Schedule Available-to-Promise 12.2.a ATP Week 2 is: a. 55 b. 65 c. 75 d. 85 80 2 325 320 650 3 325 355 4 325 300 675 12.2.b ATP Week 6 is: a. 390 b. 410 c. 430 d. 450 5 350 240 6 350 170 700 7 350 120 8 325 250 9 325 125 650 12.2.c Inventory Week 9 is: a. 20 b. 30 c. 40 d. 50 12.3. Complete the Materials Requirement Planning (MRP) record shown below. All gross requirements, beginning inventory levels, and scheduled receipts are shown. Lead Time = 2 weeks Week Gross Requirements Scheduled Receipts Projected Ending Inventory Net Requirements Planned Receipts Planned Orders Minimum Order = 1 1 200 2 215 215 3 240 4 295 5 310 6 350 450 12.3.a Planned Order Wk 2: 12.3.b Planned Order Wk 4: a. 255 a. 200 b. 265 b. 250 c. 275 c. 300 d. 285 d. 350 12.3.c Inventory Wk 2: a. 150 b. 250 c. 350 d. 450 12.4. Complete the Materials Requirement Planning (MRP) record shown below. Lead Time = 2 weeks Week Gross Requirements Scheduled Receipts Projected Ending Inventory Net Requirements Planned Receipts Planned Orders Minimum Order = 500 1 0 2 350 3 350 4 350 5 0 750 12.4.a Planned Order Wk 4: a. 500 b. 600 c. 700 d. 800 12.4.b Inventory Wk 6: a. 350 b. 450 c. 550 d. 650 12.4.c Net Req. Wk 6: a. 140 b. 150 c. 160 d. 170 6 350 Use the following information for questions 12.5.a-g 12.5. The figure below shows the bill of material (BOM) for the Acme PolyBob, a product that has proven unsuccessful in capturing roadrunners. Complete the MRP records. All the information you need is shown in the BOM and on the MRP records. A * C* B E* * Note: 2 C's required for each A F Note: 3 E's required for each B D E F* * Note: 2 F's required for each C 12.5.a Item B Lead Time = 1 weeks Week Gross Requirements Scheduled Receipts Projected Ending Inventory Net Requirements Planned Receipts Planned Orders Minimum Order = 1 1 0 2 400 3 350 4 275 5 375 6 250 3 4 5 6 350 12.5a The Planned Order Week 2 is: a. 150 b. 250 c. 350 d. 450 12.5.b,c Item C Lead Time = 2 weeks Week Gross Requirements Scheduled Receipts Projected Ending Inventory Net Requirements Planned Receipts Planned Orders Minimum Order = 800 1 2 600 450 12.5.b Gross Requirements Week 4 is: a. 250 b. 350 c. 450 d. 550 12.5.c Proj. Ending Inventory Week 6 is: a. 150 b. 160 c. 170 d. 180 12.5.d,e Item E Lead Time = 3 weeks Week Gross Requirements Scheduled Receipts Projected Ending Inventory Net Requirements Planned Receipts Planned Orders Minimum Order = 6000 1 2 3 4 5 6 8350 12.5.d Gross Requirements Week 3 is: a. 1605 b. 1615 c. 1625 d. 1635 12.5.e Proj. Ending Inventory Week 5 is: a. 2050 b. 2150 c. 2250 d. 2350 12.5.f,g Item F Lead Time = 4 weeks Week Gross Requirements Scheduled Receipts Projected Ending Inventory Net Requirements Planned Receipts Planned Orders Minimum Order = 800 1 2 3 4 5 6 8975 12.5.f Gross Requirements Week 2 is: a. 1650 b. 1750 c. 1850 d. 1950 12.5.g Proj. Ending Inventory Week 5 is: a. 2875 b. 2975 c. 3075 d. 3175 Chapter 13 - Just in Time (JIT) 13. Consider the following information: Demand Rate (D) Lead Time (T) Container Capacity (C) Safety Factor (x) = 200 units per hour = 4 hours = 75 units = 15% Hint: Always round the # of kanbans up to the next whole number (ex., 5.16 gets rounded to 6, not 5). 13. The # Kanbans is: a. 12 b. 13 c. 14 d. 15