Question: The ABC Company builds a computer model called ICU2. The product structure diagram of the ICU2 model is shown in the figure below. Suppose that

The ABC Company builds a computer model called ICU2. The product structure diagram of the ICU2 model is shown in the figure below. Suppose that the forecasted demands of the computer over weeks 6 to 11 are 220, 165, 180, 120, 75, 300. The starting inventory of assembled computers in week 6 will be 75, and the production managers anticipated returns of 30 in week 8 and 10 in week 10.

The ABC Company builds a computer model called

(a) Determine the net demand of the computers over the 6 months.

(b) Determine the planned order release for the motherboards assuming a lot-for-lot scheduling rule. Estimate its total ordering and holding. Assume the holding cost is $0.5/unit/month and the ordering cost is $100 per order.

(c) Determine the planned order release for the motherboards assuming a EOQ scheduling rule. Estimate its total ordering and holding using the same parameters in part (b).

(d) Determine the planned order release for the motherboards assuming a Silver-Meal scheduling rule. Estimate its total ordering and holding using the same parameters in part (b).

ICU2 Computer (end item) Mother board (1) Lead time= 3 weeks Disk Drives (2) Lead Time= 1 Add-in Boards(3) DRAM Chips(90) Lead Time = 2 weeks Lead Time = 1 week

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

9. Assume that the continuous annual risk-free rate is 5% and the current spot price of Target Corporation is $100. a. If Target is going to pay a $2 dividend once per year for the next 3 years, what...

1. (30 points) A computer company builds a computer designated model ICU2. The product structure diagram for the ICU2 computer is given in the figure given below. Suppose that the forecasted demands...

The Noname Computer Company builds a computer designated model ICU 2 . It imports the motherboard of the computer from Taiwan, but the company inserts the sockets for the chips and boards in its...

. ICU2 computer (end item) Motherboard (1) Lead time -3 weeks Disk drives (2) Lead time = week Add-in-boards (3) Lead time = 1 week DRAM chips (90) Lead time 2 weeks The NoName Computer Company...

1. The Noname Computer Company builds a computer designated model ICU2. It imports the motherboard of the computer from Taiwan, but the company inserts the sockets for the chips and boards in its...

Prove or disprove that n2 79n + 1601 is prime whenever n is a positive integer.

If A is an m x n matrix, then AAT and ATA have the same rank. B. If an m x n matrix A has linearly dependent columns and b is a vector in Rm, then b does not have a unique projection onto the column...

Not really! Global capital markets are relatively low risk for investors once they have their investment picks. Yes! Investors face exchange rate risk. Yes! Investments tend to be more expensive in...

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...