Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 8, Problem 41AP
Summary Introduction

Interpretation: The gross requirement schedule for the solar cells, the buttons, the LCD display and the main processor chips is to be determined.

Concept Introduction:

The gross requirement schedule can be defined as the summation of the dependent and independent demand of the component before the total of the on-hand inventory and schedule receipts

Expert Solution & Answer
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Answer to Problem 41AP

The gross requirement of MPS −

    Week 567891011121314151617
    MPS12128101032214186
    Gross requirement of processor12128101032214186
    Gross requirement of solar cell48483240401288567224
    Gross requirement of LCD12128101032214186
    Gross requirement of button 480480320400400120880560720240

Explanation of Solution

Given information:

The lead time of four solar cells = 1 week

The lead time of one LCD = 1 week

The lead time of forty buttons = 2 weeks

The lead time of one processor = 3 weeks

The MPS of the product from week 8 to week 17 is given as −

    Week 891011121314151617
    MPS 1200120080010001000300220014001800600

The following method will be used to determine the gross requirement of the component processor −

  • The multiplication of the production of CL by one will result in gross requirement of processor.
  • The gross requirement will be phased back by three periods.

The following method will be used to determine the gross requirement of the component solar cell −

  • The multiplication of the production of CL by four will result in gross requirement of solar cell.
  • The gross requirement will be phased back by one period.

The following method will be used to be calculate the gross requirement of component LCD −

  • The multiplication of the production of CL by one will result in gross requirement of LCD.
  • The gross requirement will be phased back by one period.

The following method will be used to be calculate the gross requirement of component button −

  • The multiplication of the production of CL by forty will result in gross requirement of button.
  • The gross requirement will be phased back by two periods.

Now, the gross requirement of MPS can be given as −

    Week 567891011121314151617
    MPS12128101032214186
    Gross requirement of processor12128101032214186
    Gross requirement of solar cell48483240401288567224
    Gross requirement of LCD12128101032214186
    Gross requirement of button 480480320400400120880560720240

Hence, the gross requirement schedule is determined which will be used to determine the net requirement and planned order release of each component.

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Basic EOQ Model Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. When should Item X be ordered? * Whenever Item X's inventory level drops to 50 units O Every 9 days Every 50 days 50 times a year How much would be Item X's total annual procurement cost? *
Basic EOQ Model Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. When should Item X be ordered? * Whenever Item X's inventory level drops to 50 units O Every 9 days Every 50 days 50 times a year How much would be Item X's total annual procurement cost? *
Basic EOQ Model Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. How many units of Item X should be ordered each time? * O 94 units 2,000 units O 95 units O 100 units
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