The document contains 5 problems related to operations management concepts like delivery cycle time, manufacturing cycle efficiency, economic order quantity, reorder point, and safety stock. Problem 1 provides data on production lead times and cycle times to calculate delivery cycle time (20 days) and manufacturing cycle efficiency (50%). Problem 2 calculates manufacturing cycle efficiency (75%) for a production cell. Problem 3 calculates economic order quantity (400 units) and related inventory costs for a company. Problem 4 calculates reorder point (700 units) and safety stock (350 units) for a material. Problem 5 provides data to calculate annual inventory carrying costs (P1,380) and total order costs (P2,000) using economic order quantity models.
The document contains 5 problems related to operations management concepts like delivery cycle time, manufacturing cycle efficiency, economic order quantity, reorder point, and safety stock. Problem 1 provides data on production lead times and cycle times to calculate delivery cycle time (20 days) and manufacturing cycle efficiency (50%). Problem 2 calculates manufacturing cycle efficiency (75%) for a production cell. Problem 3 calculates economic order quantity (400 units) and related inventory costs for a company. Problem 4 calculates reorder point (700 units) and safety stock (350 units) for a material. Problem 5 provides data to calculate annual inventory carrying costs (P1,380) and total order costs (P2,000) using economic order quantity models.
The document contains 5 problems related to operations management concepts like delivery cycle time, manufacturing cycle efficiency, economic order quantity, reorder point, and safety stock. Problem 1 provides data on production lead times and cycle times to calculate delivery cycle time (20 days) and manufacturing cycle efficiency (50%). Problem 2 calculates manufacturing cycle efficiency (75%) for a production cell. Problem 3 calculates economic order quantity (400 units) and related inventory costs for a company. Problem 4 calculates reorder point (700 units) and safety stock (350 units) for a material. Problem 5 provides data to calculate annual inventory carrying costs (P1,380) and total order costs (P2,000) using economic order quantity models.
The document contains 5 problems related to operations management concepts like delivery cycle time, manufacturing cycle efficiency, economic order quantity, reorder point, and safety stock. Problem 1 provides data on production lead times and cycle times to calculate delivery cycle time (20 days) and manufacturing cycle efficiency (50%). Problem 2 calculates manufacturing cycle efficiency (75%) for a production cell. Problem 3 calculates economic order quantity (400 units) and related inventory costs for a company. Problem 4 calculates reorder point (700 units) and safety stock (350 units) for a material. Problem 5 provides data to calculate annual inventory carrying costs (P1,380) and total order costs (P2,000) using economic order quantity models.
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Problem 1: Santino Company's vice president for finance has decided to use delivery
performance measures to evaluate performance. He requested the production manager to submit
data that will be used for the evaluation. The production manager submitted the following, which, accordingly is typical of the time involved to, complete orders:
Waiting time from orders being placed to start of production 6 days
Waiting time from start of production to completion 2 days Process time 1 week Move time 4 days Inspection time 1 day
The company operates seven days a week.
What is the delivery cycle time? 2o days
The total manufacturing cycle (or throughput) time is 14 days
The value-added production time is 7 days
What is the manufacturing cycle efficiency? 50%
What is the delivery cycle efficiency? 35%
Problem 2: Kotse-Kotsehan Company manufactures toy cars. It divided its production line into different manufacturing cells. One cell in the assembly department installs the motor in the toy cars. The maximum capacity of the cell is 5,000 units per month. There are 2,500 production hours available per month.
If the cell uses 2 minutes of move time, 5 minutes of wait time, and 3 minutes of inspection time, what is the manufacturing cycle efficiency?75 %
Problem 3: Emil Traders, Inc. sells cellphone cases which it buys from a local manufacturer. Emil Traders sells 24,000 cases evenly throughout the year. The cost of carrying one unit in inventory for one year is P11.52 and the order cost per order is P38.40.
What is the economic order quantity? P400
If Emil Traders would buy in economic order quantities, the total order costs is 2,304 PHP
If Emil Traders would buy in economic order quantities, the total inventory carrying costs per year is Php 2304
Problem 4: The following information is available for Edgar Corporation's Material X
Annual usage 12,600 units Working days per year 360 days Normal lead time 20 days
The units of Material X are required evenly throughout the year.
What is the reorder point? 700 units
Assuming that occasionally, the company experiences delay in the delivery of Material X, such that the lead time reaches a maximum of 30 days, how many units of safety stock should the company maintain and what is the reorder point? Safety stock, 350; Reorder Point, 1,050.
Problem 5: Using the EOQ model, Apple Baby Corporation computed the economic order quantity for one of the products it sells to be 4,000 units, Apple Baby Corporation maintains safety stock of 300 units. The quarterly demand for the product is 10,000 units. The order cost is P200 per order. The purchase price of the product is P2.40. The company sells at a 100% markup. The annual inventory carrying cost is equal to 25% of the average inventory level.
The annual inventory carrying costs is
P1,380 The total Inventory order cost per year is P2,000
