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Question 1
Frank's machine shop operates 250 days per year. Frank sells 5,000 units per year of his most popular item, a specialty gear. The set-up cost for this gear is £100 and the monthly unit cost of holding inventory is 1% of the production cost per unit, which is £50. The lead time is 10 days. When the gear is being produced, the shop can make 80 gears per day (Hint: You should use the production model for inventory management.).
Complete the following:
Question 2
For this part of the Individual Project, you need to use the POM-QM for Windows software:
The product structure tree for the finished product A is given below.
The marketing department is estimating product A's demand to be 60 units for week 4 and 50 units for week 6. There is a scheduled receipt of 75 units for component D at the beginning of week 2. Various other MRP related information for the finished products and the components are provided below.
A
C
D
E
On hand
12
170
9
5
Lead time
2
1
Lot size
LFL
150+
multiples of 40
multiples of 22
Provide the MRP tables for all the finished products and the components for the next six weeks.
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