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

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