Course / Week 2 - Materials M... / Material... Quiz: Materials Planning Methods W Bookmark this page Materials Planning Methods 3 points possible (ungraded) Instructions: Answer all questions and click Submit. Click Show Answer to check if you understood the questions and answers correctly. 1. A small company uses two types of set screws, M1.4 and M2, for the assembly of battery packs for special products. These are sourced from the same supplier. The company has an inventory carrying cost of 25%. The cost for each order is 75 and they use two weeks of demand as Safety Stock. So far the company haven't used any standardized methods for their material planning and it's quite common that they run the stock empty. One of the employees, Anna, has been on a logistics seminar and suggests trying some haven't used any standardized methods for their material planning and it's quite common that they run the stock empty. One of the employees, Anna, has been on a logistics seminar and suggests trying some of the methods presented there. She has looked into some order statistics and found that the they on average order 20 boxes of each type of set screw, times a year for M1.4 and 11 times a year for M2. Assume that the company work 40 weeks/year. 1a. What is the Re-Order Point for M1.4? Enter the correct value in the input field. Round off to the closest integer, if needed. 1b. What is the Re-Order Point for M2? Enter the correct value in the input field. Round off to the closest integer, if needed. On the seminar, Anna also learnt about the Period riew method. his something that the company should consider? ct the alternative that applies. No, since the ROP is the best method for them. No, the two items don't have the same demand, and hence they should be ordered with different frequency. Yes, since the Period Review Method will allow them to also have a lower safety stock. Yes, the Period Review Method will give them the possibility to order the two items at the same time and hence that will save them both transportation cost as well as administrative cost