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. ICU2 computer end item) Motherboard (1) Lead lime - 3 weeks Disk drives (2) Lead time 1 week Add-in boards (3) Lead time - 1 week DRAM chips 1901 Lead time - 2 weeks.

The ABC Company builds a computer model called ICU2. The product structure

(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).

This is the only information given, need to solve using them.

The answered should be a written manually NOT USING EXCEL.

ICU2 computer end item) Motherboard (1) Lead time = 3 weeks Disk drives (2) Lead time 1 week Add-in boards (3) Lead time - 1 week DRAM chips 190) Lead time - 2 weeks ICU2 computer end item) Motherboard (1) Lead time = 3 weeks Disk drives (2) Lead time 1 week Add-in boards (3) Lead time - 1 week DRAM chips 190) Lead time - 2 weeks

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 Accounting Questions!