Question 1

Question 2

1. (15 points) Sally's Silk Screening produces specialty Tshirts 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 are sold for $4 apiece. It costs Sally $8 to make a specialty Tshirt. Using Sally's estimate of demand that follow, a) How many T-shirts should she produce for the upcoming event? b) What is the resulting service level for the answer you got in part (a)? c) What is the expected profit for the answer you got in part (a) 2. (15 points) Consider an end-item product "C" with the following master schedule and product structure tree: Other important information: a) One C is made up of 3 As and 2Bs. b) The assembly of " A and "B" to make " C" is one week. o The part " A " is made by the company and lead time is two weeks. 4 The part " B " is made by the company and lead time is one week. "C " follows a lot-for-lot policy. The company follows a lot-size ordering policy for both " A and " B " with lot size of 80 for " A " and 40 for "B". o There is a scheduled receipt for 50 " Bat the beginning of week 1. si There are 10 units of " C4+ on hand prior to period 1 and 0 units on hand for " Aand Bprior to period I. On the next page, explode out the MRP schedule and fill in all cells of the schedule which would have nonzero values. . There are 10 units of " C - on hand prior to period 1 and 0 units on hand for " A " and B " prior to period 1. On the next page, explode out the MRP schedule and fill in all cells of the schedule which would have nonzero values. IIEM "C ITEM "A