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    Excercise 5,6

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    sume shquidec
    F&M uses MRP to schedule production and wants to reduce inventory costs without hurting customer service. Demand data for a file cabinet is given over 5 periods. Using L4L, EOQ, and POQ lot sizing, the optimal rule is determined. L4L results in 4 orders and $405 total cost. EOQ results in 2 orders and $295 total cost. POQ results in 2 orders and lowest total cost of $255. Therefore, POQ lot sizing is recommended.

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    Excercise 5,6

    Uploaded by

    sume shquidec
    114 views4 pages
    F&M uses MRP to schedule production and wants to reduce inventory costs without hurting customer service. Demand data for a file cabinet is given over 5 periods. Using L4L, EOQ, and POQ lot sizing, the optimal rule is determined. L4L results in 4 orders and $405 total cost. EOQ results in 2 orders and $295 total cost. POQ results in 2 orders and lowest total cost of $255. Therefore, POQ lot sizing is recommended.

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    excercise 5,6

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    F&M uses MRP to schedule production and wants to reduce inventory costs without hurting customer service. Demand data for a file cabinet is given over 5 periods. Using L4L, EOQ, and POQ lot sizing, the optimal rule is determined. L4L results in 4 orders and $405 total cost. EOQ results in 2 orders and $295 total cost. POQ results in 2 orders and lowest total cost of $255. Therefore, POQ lot sizing is recommended.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    114 views4 pages

    Excercise 5,6

    Uploaded by

    sume shquidec
    F&M uses MRP to schedule production and wants to reduce inventory costs without hurting customer service. Demand data for a file cabinet is given over 5 periods. Using L4L, EOQ, and POQ lot sizing, the optimal rule is determined. L4L results in 4 orders and $405 total cost. EOQ results in 2 orders and $295 total cost. POQ results in 2 orders and lowest total cost of $255. Therefore, POQ lot sizing is recommended.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Exercise 5

    The Alpha Beta Company produces two products; A and B, that are made from components C
    and D. Given the following product structures, master scheduling requirements, and inventory
    information, determine when orders should be released for A, B, C, and D and the size of those
    orders

    LLC:
    item A 0
    lotsize: L4L LT: 3 1 2 3 4 5 6 7 8
    gross requirement 0 0 0 0 0 0 0 100
    schedule receipts                
    projected on hand 10 10 10 10 10 10 10 10 0
    net requirement               90
    planned order
    receipts               90
    planned order
    releases           90      

    Answer
    item B LLC: 0 period
    lotsize: L4L LT: 2 1 2 3 4 5 6 7 8
    gross requirement 0 0 0 0 0 200 0 0
    schedule receipts                
    projected on hand 5 5 5 5 5 5 0 0 0
    net requirement           195    
    planned order receipts           195    
    planned order releases         195        

    LLC:
    item C 0 period
    lotsize: Min 50 LT: 4 1 4 2 5 3 6 7 8
    gross requirement 0 0 0 270 0 0 0 0
    schedule receipts                
    projected on hand 140 140 140 140 140 0 0 0 0
    net requirement         130      
    planned order
    receipts         130      
    planned order
    releases   130              

    item D LLC: period


    0
    lotsize: Mul 250 LT: 2 1 2 3 4 5 6 7 8
    gross requirement 0 0 0 585 180 0 0 0
    schedule receipts   250            
    projected on hand 200 200 200 450 115 185 185 185 185
    net requirement       135 65      
    planned order       250 250      
    receipts
    planned order     250 250          
    releases

    Exercise 6
    Files and More, Inc. (F&M), a manufacturer of office equipment, uses MRP to schedule its production.
    Because of the current recession and the need to cut costs, F&M has targeted inventory as a prime area
    for cost reduction. However, the company does not want to reduce its customer service level in the
    process. Demand and inventory data for a two-drawer file cabinet are given in the following table.
    Complete an MRP matrix for the file cabinet using:
    (a) L4L
    (b) EOQ
    (c) POQ lot sizing.
    Which lot-sizing rule do you recommend?

    Lead time = 1 period


    Holding cost = $1 per cabinet per period
    Ordering cost = $100 per order
    Beginning inventory = 25

    Answer
    20+ 40+30+10+ 45
    d́= =29
    5
    a.

    L4L
    item LLC: 0 period
    lot size: L4L LT: 1 1 2 3 4 5
    gross requirement 20 40 30 10 45
    schedule receipts          
    projected on hand 25 5 0 0 0 0
    net requirement   35 30 10 45
    planned order receipts     35 30 10 45
    planned order releases   35 30 10 45  

    Total cost = (4x100$)+(5x1$) = 405$

    b.
    2 Co d́
    EOQ=
    √ √Cc
    =
    2 ×100 × 29
    1
    =76

    EOQ
    item LLC: 0 period
    lot size: EOQ 77 LT: 1 1 2 3 4 5
    gross requirement 20 40 30 10 45
    schedule receipts          
    projected on hand 25 5 42 12 2 34 X
    net requirement   35     43
    planned order receipts     77     77
    planned order releases   77     77  

    Total cost = (2x100$) + (5+42+12+2+33) x 1$ = 295$


    c.
    Q 77
    POQ= = ≈ 3
    d́ 29

    POQ
    item LLC: 0 period
    lot size: POQ 3 LT: 1 1 2 3 4 5
    gross requirement 20 40 30 10 45
    schedule receipts          
    projected on hand 25 5 40 10 0 0
    net requirement   35     45
    planned order receipts     75     45
    planned order releases   75     45  

    Total cost = (2x100$) + (5+40+10) x1$ = 255$


    The POQ should be recommended because the total cost is the lowest

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