Question

manufacturing plng/ control

1. Suppose that your company sells a product for which the annual demand is 10,000 units. Holding costs are $1.00 per unit per year, and setup costs are $200 per order (a) What is the economic order quantity for your product? (b) What will be the annual total cost holding and ordering? 2. A company has currently 100 workers. A worker works 40 hours a week, and can at most work 20 hours of overtime per week. Full time employees earn $400 per week, and $15/hour for each overtime hour that has worked. They are producing the widgets, each widget would need 4 hours to be produced, and following demand occurs Demand Week 800 1100 2 1200 3 600 4 900 5 800 6 1800 7 1200 1500 900 10 The backorder cost is $10/item per week, and the inventory holding cost is $5/item per week. It costs $1000 to fire a worker, and $500 to hire a worker. Initially, there are 100 widgets in the inventory. At the end of the 10 weeks, there should be no backordered items, and no inventory left. Alternatively, the product might be outsourced for $60 per piece. Based on those, develop a mathematical model that will minimize the total cost. cmation LEVE SC Qty:1 LEVEL L R Qty:1 O Qty:1 Qty:2 e cane The Master Production Schedule shows we have to make 400 scissors during the 4 rd week, in the 5 th week 600, in the 6 th week 800, and in the 7 th week 300 scissors. The available on hand is 100 scissors in Unit 0, The lead time for the scissors is 1 weeks. The lead time for the left side is 1 week, for the screw is 1 weeks, and the right side 2 wecks, and there are no beginning inventory right part, 100 for the screws, and 50 for the left part. Generate an MRP schedule for those parts by filling the following table. L4L Table for the Scissors 7 6 2 1 0 Gross Requirement Scheduled Receipts Projected on 100 Hand Planned Order Receipts Planned order release Table for the Right side Batch size-150 7 5 6 2 Gross Requirement Scheduled 200 Receipts Projected on Hand Planned Order Receipts Planned order release Table for the screws side L4L 0 2 3 4 5 6 Gross Requirement Scheduled Receipts Projected on Hand Planned Order Receipts 7 100 100 Planned order release Table for the right side Batch size-50 1 2 6 Gross Requirement Scheduled 100 Receipts Projected on Hand Planned 50 Order Receipts Planned order release During the summer, Olympic swimmer Adam Johnson swims every day. On sunny 4. days, he must go to a domed pool. At the beginning of the summer, he has the option of purchasing a $15 season pass to the domed pool, which allows him use for the entire summer days, he goes to an outdoor pool, where he may swim for no charge. On rainy summer. If he doesn't buy the season pass, he must pay $1 cach time he goes there. Past meteorological records indicate that there is a 60% chance that the summer will be sunny (in which case there is an average of 6 rainy days during the summer) and a 40% chance the summer will be rainy (an average of 30 rainy days during the summer). begins, Adam has the option of purchasing a long-range weather forecast for $1. The forecast predicts a sunny summer 80% of the time and a rainy Before the summer summer 20% of the time. If the forecast predicts a sunny summer, there is a 70% chance that the summer will actually be sunny. If the forecast predicts a rainy summer, there is an 80% chance that the summer will actually be rainy. Assuming that Adam's goal is to minimize his total expected cost for the summer, what should he do? Also find EVSI and EVPI.

Answer 1

Question number:1

We know at economic order quantity,

Ordering cost must be equal to holding cost.

Solution:

GVEN DATA Annual demand = D 10,000 uni ts. cost = he = $1,00 Per unitpe Y year. Set up cost Oc =9g 200 per o rd er. Solution: We knou ECono mic order a uanti ty Annual ordering cost (or) Annual Set up cost DOc he. a cost Annual holding 2. Economic orde quantity A t holding ordeving Annua Annual Cost Cost he.a DoL 2 DOc hu 2 DOC he

Where, ordey quantity = Econo mic 2 DOC he 2X (0000 X 200 = 2,000 Order quantity Annual tos t cost economic at Annual ordeing cast D OC to, o00 x 200 a000 Anrual ordeY Cost 1,000. Annual kelding cost Ix 2,000 29 -S10,00. $1,000

Atmual total coct Annual ordering cost Annual holding cost 1000 + (000 a000 1 Result Economic order quantity 2/000. Annual ordering 1000 cost cost = $ J000. Annual Puspoy