inventory contory

MFG 5341

Adv. Production & Inventory Control

Exam 03

Name: _______________________________________________________ ID:__________________

Some words of advice:

 Carefully read all the questions first.

 Show your work. Partial credit will be given. Grading will be based on correctness, clarity, and neatness.

 If you believe that you cannot answer a question without making some assumptions, state those assumptions in your answer

 No cellphones are allowed during the exam, to solve the problems use a calculator!

 NO collaboration of any sort is allowed; exams must be entirely your own work.

 Write clearly; if I can’t read it I can’t grade it.

 Don’t write your answers in this exam

1. A manufacturing facility is manufacturing a new tablet. The tables are formed by mother board, memory chips, and touch display. A tablets requires one mother board and 1 touch display. The motherboard

requires two memory chips. Once that all pieces are in the plant it takes 2 weeks to assemble the final

product. The projected demand for weeks 6 to 10 are: 100,120,300, 200, 125. The company has for week 6

already 30 tablets. The company also need to have at the end of week 10 an inventory of 50 tablets.

a) Determine the MPS for all the parts assuming LFL policy

b) Calculate the planned order release strategy for memory chips using the EOQ policy. K=$400 h=0$.75 c) Calculate the cost for part b

d) Calculate the planned order release strategy for memory chips using the silver meal method e) Calculate the cost for part d f) Calculate the planned order release strategy for memory chips using the lest cost method g) Calculate the cost for part f

𝑄 = √ 2𝐾𝜆

ℎ

Silver meal: average cost per period Least cost: cost per unit

Tablet (2 weeks)

Motherboard (1) (1 weeks)

Memory chip[s (2) (2 weeks)

Touch display (1) (1 weeks)

2. A transportation Company has 3 different supply sources and 6 destinations (stores). The demand for each

store per supplier is 900,000 units. The transportation company can ship 30,000 units per truck. The cost

per load is $1,500 and there is an additional cost of $150 per delivery. Each store has a holding cost of $.50

per unit per year

a) Consider direct shipment policy. Calculate the total Cost

b) Consider a milk-run transportation policy with milk runs of two stores per travel. Calculate the Total cost

for the policy

3. Cars are shipped from three distribution centers to five dealers. The shipping cost is based on the millage between the sources and the destinations and is independent of whether the truck makes the trip with partial

or full loads. The table below summarizes the millage between the distribution centers and the dealers

together with the monthly supply and demand figures given in numbers of cars. A full truckload includes

18 cars. The transportation cost per truck mile is $25. Hint: Express your demand in term of tuck loads (round to the next integer.)

Hint: Express the cost in thousands of dollars ( For instance $1,000 1 thousands of dollars)

Mileage chart and supply and demand data Dealer Center 1 2 3 4 5 supply

1 100 150 200 140 35 400

2 50 70 60 65 80 200

3 40 90 100 150 130 150

Demand 100 200 150 160 140

a) Formulate the associated transportation problem (construct the table)

b) Obtain a feasible solution using the northwest method and Total cost

c) Obtain a feasible solution using the least cost method and total cost

d) Use the solution from part (c) to find the optimal solution using the multiplier method

4. A company has 3 different suppliers with the following capacities: 10,80,15. There are 3 destinations with

the following demands 75,20,50. Destination 3 requires fulfilling its demand 100%. The cost to send units

from each supplier to each destination is in the following table.

5 1 7

6 4 6

3 2 5

a) Formulate the associated transportation problem (construct the table) Hint: you need to create a dummy

supplier to balance the problem. However because destination 3 need to always fulfill its demand you can’t

send units from the dummy supplier to destination 3.

b) Obtain a feasible solution using the least cost method and total cost

c) Use the solution from part (b) to find the optimal solution using the multiplier method