Reference no: EM132260195 , Length: word count:2000

Assignment -

Part A -

Q1. What does the textbook mean when it states that rather than to search for the perfect forecast one should learn to live with inaccurate forecasts?

Q2. Describe the collaborative planning, forecasting and replenishment (CPFR) technique.

Q3. Distinguish between errors in statistics and errors in forecasting.

Q4. Discuss the four costs relevant to the aggregate operations plan.

Q5. Discuss the five conditions named in the text that support yield management from an operational perspective.

Part B - Study Problems

Q1. Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If beginning inventory is 4,000 units, the demand forecast is 2,900 units and the required safety stock is 10% of the demand forecast, what is the production requirement?

Q2. If it takes a supplier 10 days to deliver an order once it has been placed and the standard deviation of daily demand is 14, what is the standard deviation of usage during lead time?

Q3. using the fixed-time period inventory model and given an average daily demand of 300 units, 4 days between inventory reviews, 5 days for lead time, 1,200 units of inventory on hand, a "z" of 1.96 and a standard deviation of demand over the review and lead time of 12 units, what quantity should be ordered?

Q4. If annual demand is 8,000 units, the ordering cost is $20 per order and the holding cost is $12.50 per unit per year, what is the optimal order quantity using the fixed-order quantity inventory model?  

Q5. Assuming no safety stock, what is the re-order point (R) given an average daily demand of 100 units and a lead time of 5 days?

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 500 units, the demand forecast is 1,000 and the necessary safety stock is 10% of the demand forecast, what is the production requirement?

Q6. A company wants to forecast demand using the simple moving average. If the company uses three prior yearly sales values (i.e., year 2006 = 185, year 2007 = 215 and year 2008 =230), what is the simple moving average forecast for year 2009?

Q7. A company wants to forecast demand using the weighted moving average. If the company uses two prior yearly sales values (i.e., year 2007 = 11,000 and year 2008 = 13,000) and we want to weight year 2007 at 35% and year 2008 at 65%, what is the weighted moving average forecast for year 2009?

Part C -

Q1. Discuss the importance of inventory record accuracy to an MRP system.

Q2. Discuss what are the three main inputs to an MRP program?

Q3. Would we expect high or low carrying costs and/or setup costs in L4L? Explain.

Q4. Explain why "freezing the master schedule" is not the same as reducing the level of service to customers.

Q5. What is Johnson's rule?

Q6. What is the difference between finite and infinite loading?

Q7. Distinguish between forward scheduling and backward scheduling.

Part D - Study Problems

Q1. What is the planned-order release using an MRP program if the gross requirement is 1,600 and the inventory on hand is 600?

Q2. A machine shop has two machines, A and B. Four jobs need to be processed through machine A first and B second. Job 1 will take one hour on machine A and three hours on machine B. Job 2 will take three hours on A and two hours on B. Job 3, seven on A and three on B. Job 4, five hours on A and one hour on B. Using Johnson's rule, in what order should these jobs be done?

Q3. A work center has five jobs assigned to it. They are labelled, in the order of their arrival in the shop, as jobs A, B, C, D, and E. The work center may work on only one job at a time and must complete any job it starts before starting another job. Job A has a processing time of 6 days and is due to the customer in 9 days. Job B has a processing time of 2 days and is due in 16 days. Job C has a processing time of 4 days and is due in 10 days. Job D has a processing time of 3 days and is due in 7 days. Job E has a processing time of 5 days and is due in 12 days. Using the shortest operating time priority rule, in what order should these jobs be undertaken?

Q4. A work center has five jobs assigned to it. They are labeled, in the order of their arrival in the shop, as jobs A, B, C, D and E. The work center may work on only one job at a time and must complete any job it starts before starting another job. Job A has a processing time of 6 days and is due to the customer in 9 days. Job B has a processing time of 2 days and is due in 16 days. Job C has a processing time of 4 days and is due in 10 days. Job D has a processing time of 3 days and is due in 7 days. Job E has a processing time of 5 days and is due in 12 days. Using the shortest operating time priority rule, what will be the average lateness of these orders?

Q5. Assume there are five jobs (i.e., A, B, C, D, and E) that need to be sequenced in a production schedule. The remaining operating time necessary for completion of job A is 3 days (i.e., job A will take 3 more days to complete), B will take 9 days, C will take 6 days, D will take 5 days, and E will take 8 days. In what order will these jobs be scheduled if using the SOT priority rule for job sequencing?

Q6. What is the planned-order release using an MRP program if the gross requirement is 5,000 and the inventory on hand is 1,200?

Q7. A job has 5 days of processing time left to do before completion and today is the 10th day of the month. If the job is due on the 14th day of the month, what is its critical ratio?

Q8. Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500?