Oh no inc sells three models

Critical Thinking Exercise

DeVry Chicago BSOP 334 Week 1 Homework

Ch 1: Critical Thinking Exercise 2 (p. 37)

2. Why is it important to match supply and demand? If a manager believes that supply and demand will not be equal, what actions could the manager take to increase the probability of achieving a match?

Ch 2: Discussion & Review Question 2 (p. 64), Problem 3 (p. 65)

2. List the key ways that organizations compete.

3. Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. What do the productivity figures suggest? Assume 40-hour weeks and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound.

Ch 11: Discussion & Review Questions: 3 & 7 (p. 502, p. 503), Problem 4 (p. 503)

3. What is aggregate planning? What is its purpose?

7. Briefly discuss the advantages and disadvantages of each of these planning strategies:

a. Maintain a level rate of output and let inventories absorb fluctuations in demand.

b. Vary the size of the workforce to correspond to predicted changes in demand requirements.

c. Maintain a constant workforce size, but vary hours worked to correspond to predicted demand requirements.

DeVry Chicago BSOP 334 Week 1 Lab

DeVry Chicago BSOP 334 Week 2 Lab

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DeVry Chicago BSOP 334 Week 3 Lab

Week 3 Lab - Chapter 12: Problems 1, 2, and 3 (pp. 543-544)
Problem 1

a. Given the following diagram for a product, determine the quantity of each component required to assemble one unit of the finished product.

b. Draw a tree diagram for the stapler:

Problem 2

The following table lists the components needed to assemble an end item, lead times, and quantities on hand.

a. If 20 units of the end item are to be assembled, how many additional units of E are needed? (Hint: You don’t need to develop an MRP plan to determine this.)

b. An order for the end item is scheduled to be shipped at the start of week 11. What is the latest week that the order can be started and still be ready to ship on time? (Hint: You don’t need to develop an MRP plan for this part either.)

Parts need to be ordered at start of Week 5.

Problem 3

The following table lists the components needed to assemble an end item, lead times (in weeks), and quantities on hand.

a. If 40 units of the end item are to be assembled, how many additional units of B are needed? (Hint: You don’t need to develop an MRP plan.)

b. An order for the end item is scheduled to be shipped at the start of week 8. What is the latest week that the order can be started and still be ready to ship on time? (Hint: You don’t need to develop an MRP plan.)

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DeVry Chicago BSOP 334 Week 4 Lab

8) Oh No!, Inc., sells three models of radar detector units. It buys the three basic models (E, F, and G) from a Japanese manufacturer and adds one, two, or four lights (component D) to further differentiate the models. D is bought from a domestic producer.

Lead times are one week for all items except C, which is two weeks. There are ample supplies of the basic units (E, F, and G) on hand. There are also 10 units of B, 10 units of C, and 25 units of D on hand. Lot-sizing rules are lot-for-lot ordering for all items except D, which must be ordered in multiples of 100 units. There is a scheduled receipt of 100 units of D in week 1.

The master schedule calls for 40 units of A to be produced in week 4, 60 units of B in week 5, and 30 units of C in week 6. Prepare a material requirements plan for D and its parents.

10)Assume that you are the manager of Assembly, Inc. You have just received an order for 40 units of an industrial robot, which is to be delivered at the start of week 7 of your schedule. Using the following information, determine how many units of subassembly G to order and the timing of those orders, given that subassembly G must be ordered in multiples of 80 units and all other components are ordered lot-for-lot. Assume that the components are used only for this particular robot. Order 160 in wk 2

Robot

B

G

C(3)

E

F

G(2)

H

12)A firm that produces electric golf carts has just received an order for 200 carts, which must be ready for delivery at the start of week 8. Information concerning the product structure, lead times, and quantities on hand is shown in the following table. Use this information to do each of the following:

a. Construct a product tree.

b. Construct an assembly time chart.

c. Develop a material requirements plan that will provide 200 golf carts by week 8 assuming lot-for-lot ordering.

13. Refer to Problem 12. Assume that unusually mild weather has caused a change in the quantity and timing of orders for golf carts. The revised plan calls for 100 golf carts at the start of week 6, 100 at the start of week 8, and 100 at the start of week 9.

a. Develop a master schedule for this revised plan.

b. Determine the timing and quantities for orders for tops and bases.

c. Assume that equipment problems reduce the firm’s capacity for assembling bases to 50 units per week. Revise your material plan for bases to reflect this, but still meet delivery dates.

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DeVry Chicago BSOP 334 Week 5 Homework

Chapter 12: Discussion and Review Questions: 11, 14, 15, & 16 (p. 542)

11. Briefly describe MRP II and closed-loop MRP.

14. If seasonal variations are present, is their incorporation into MRP fairly simple or fairly difficult? Explain briefly.

15. How does the purpose of ERP differ from the purpose of MRP II?

16. What are some unforeseen costs of ERP?

Chapter 15: Discussion and Review Questions: 5, 9, & 11 (p. 695)

5. What is the bullwhip effect, and why does it occur? How can it be overcome?

9. What impact has e-business had on supply chain management?

11. What are some of the trade-offs that might be factors in designing a supply chain?

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DeVry Chicago BSOP 334 Week 5 Lab

5) End item P is composed of three subassemblies: K, L, and W. K is assembled using 3 Gs and 4 Hs; L is made of 2 Ms and 2 Ns; and W is made of 3 Zs.

On-hand inventories are 20 Ls, 40 Gs, and 200 Hs.

Scheduled receipts are 10 Ks at the start of week 3, 30 Ks at the start of week 6, and 200 Ws at the start of week 3.

One hundred Ps will be shipped at the start of week 6, and another 100 at the start of week 7. Lead times are two weeks for subassemblies and one week for components G, H, and M. Final assembly of P requires one week. Include an extra 10 percent scrap allowance in each planned order of G. The minimum order size for H is 200 units. Develop each of the following:

a. A product structure tree.

b. An assembly time chart.

c. A master schedule for P.

d. A material requirements plan for K, G, and H using lot-for-lot ordering.

6) A table is assembled using three components, as shown in the accompanying product structure tree. The company that makes the table wants to ship 100 units at the beginning of day 4, 150 units at the beginning of day 5, and 200 units at the beginning of day 7.

Receipts of 100 wood sections are scheduled at the beginning of day 2. There are 120 legs on hand. An additional 10 percent of the order size on legs is added for safety stock. There are 60 braces on hand with no safety stock requirement for braces. Lead times (in days) for all items are shown in the following table. Prepare a material requirements plan using lot-for-lot ordering.

7) Eighty units of end item X are needed at the beginning of week 6, and another 30 units are needed at the beginning of week 8. Prepare a material requirements plan for component D. D can only be ordered in whole cases (50 units per case). One case of D is automatically received every other week, beginning in week 1 (i.e., weeks 1, 3, 5, 7). Also, there are 30 units of B and 20 units of D now on hand. Lead times for all items are a function of quantity: one week for up to 100 units, two weeks for 101 to 200 units, three weeks for 201 to 300 units, and four weeks for 301 or more units.

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DeVry Chicago BSOP 334 Week 6 Homework

Chapter 5: Discussion and Review Questions: 1, 2, 6, 11, & 15 (p. 208), Problem 13 (p. 210)

1. Contrast design capacity and effective capacity.

2. List and briefly explain three factors that may inhibit capacity utilization.

6. Why is it important to adopt a big-picture approach to capacity planning?

15. Why is capacity planning for services more challenging than it is for goods production?

13. The following diagram shows a 4-step process that begins with Operation 1 and ends with Operation 4. The rates shown in each box represent the effective capacity of that operation.

a. Determine the capacity of this process. (11 units/hr)

b. Which action would yield the greatest increase in process capacity: (1) increase the capacity of Operation 1 by 15 percent; (2) increase the capacity of Operation 2 by 10 percent; or (3) increase the capacity of Operation 3 by 10 percent?

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DeVry Chicago BSOP 334 Week 6 Lab

Chapter 5: Problems 1 & 3 (pp. 208-209)

1. Determine the utilization and the efficiency for each of these situations:

a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day.

b. A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the effective capacity is five furnaces a day.

c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems? Explain.

3. A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $9,200 per month and variable costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents.

a. What volume per month is required in order to break even?

b. What profit would be realized on a monthly volume of 61,000 units? 87,000 units?

c. What volume is needed to obtain a profit of $16,000 per month?

d. What volume is needed to provide a revenue of $23,000 per month?

e. Plot the total cost and total revenue lines.

Chapter 12: Problems 15 & 16 (pp. 547-548)

15. A company that manufactures paving material for driveways and parking lots expects the following demand for its product for the next four weeks:

a. Determine the capacity utilization for labor and machine for each of the four weeks.

Week

1

2

3

4

Labor Utilization

Machine Utilization

b. In which weeks do you foresee a problem? What options would you suggest to resolve any problems? What costs are relevant in making a decision on choosing an option?

16. A company produces two very similar products that go through a three-step sequence of fabrication, assembly, and packaging. Each step requires one day for a lot to be completely processed and moved to the next department. Processing requirements for the departments (hours per unit) are

Department capacities are all 700 hours of labor and 500 hours of machine time, except Friday, when capacities are 200 hours for both labor and machine time. The following production schedule is for next week:

a. Develop a production schedule for each department that shows the capacity requirements for each product and the total load for each day. Ignore changeover time.

b. Evaluate the projected loading for the first three days of the week. Is the schedule feasible? What do you suggest for balancing the load?

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DeVry Chicago BSOP 334 Week 7 Lab Solution