What is the minimum-cost order quantity for the shoes

Assignment Help Operation Management

Reference no: EM13791388

1. A certain medical procedure requires two steps. The estimated time for each step for six patients is given in the chart below. Develop a schedule to minimize the total time required to complete the procedure on the six patients. How long does it take to complete the procedures?

Patient	Step 1 (pre-op)	Step 2 (operation)
A	10	25
B	15	16
C	22	10
D	15	20
E	22	15
F	30	22

2. Five jobs need to be scheduled. Work starts on day 1.

Job	Time to Perform Task	Due Date
A	8	12
B	5	18
C	7	23
D	3	29
E	6	8

Develop schedules using FCFS, SPT, EDD, LPT. Evaluate.

2. Tele-Reco is a new specialty store that sells TV's, DVD players, video games and other television related products. A new manufactured DVD player costs Tele-Reco $600 per item. Tele-Reco's inventory-carrying cost is figured at an annual rate of 22 percent. Ordering costs are estimated to be $70 per order.

If demand for the new DVD player is expected to be at a constant rate of 20 items per month, what is the recommended order quantity for the DVD players?

What are the estimated annual inventory holding and ordering costs associated with this product?

How many orders will be placed per year?

With 250 working days per year, what is the cycle time for this product?

3. Allen's Shoe Stores carries a basic black dress shoe for men that sells at an approximated constant rate of 500 pairs of shoes ever three months. Allen's current buying policy is to order 500 pairs each time an order is placed. It costs $30 to place an order, and inventory carrying costs have am annual rate of 20 percent. With the order quantity of 500, Allen's obtains the shoes at the lowest possible unit cost of $28 per pair. Allen's pricing structure is given below:

Order Quantity Price per Pair
Q>= 300 $28
Q < 300 $30

What is the minimum-cost order quantity for the shoes? What are the annual savings of your inventory policy over the policy currently being used?

4. One product produced by Moore-Funn Novelties is a voodoo doll. It has a fairly constant demand of 40,000 per year. The soft plastic body is the same for all the dolls, but the clothing changes periodically to conform to fad hysterics. Production runs for different products require changing the molds and settings of plastic-forming machines, new patterns for the cutters, and sewers, and some adjustments in the assembly area. The production rate of previous runs has averaged 2000 dolls per day. Setup costs are estimated at $700 per production run.

5. A doll that sells for $12.50 at a retail outlet is valued at $1.80 when it comes off the production line. Complete carrying cost as for production items are set at 20% of the production cost and are based on average inventory level. What is the optimal production time, the maximum inventory level and inventory cost for the production of the doll?

6. Consider the following linear programming problem:
max 5x+10y
subject to :
x+2y ≤ 6
6x+4y ≤ 24
x,y ≥ 0

Reference no: EM13791388

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