Assignment is Due Tomorrow
kevin_225
_assignment_.xlsxProblem 1
| Problem 1: |
| Ray’s Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,000 units. |
| His cost to carry one unit is $100 per year per unit, and he has estimated that each order cost $25 to place. |
| a) Using the EOQ model, how many should Ray order each time? |
Problem 2
| Problem 2: |
| Gentle Ben’s Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine cost $3 per bottle and is served only in whole bottles because it loses its bubbles quickly. |
| Ben figures that it cost $10 each time an order is placed and holding costs are 20% of the purchase price. It takes three weeks for an order to arrive. Weekly demand is 100 bottles (closed two weeks per year) |
| with a standard deviation of 30 bottles. Ben would like to use an inventory system that minimizes inventory cost and will provide 95% service probability. (Z≈1.65) |
| a) What is the economic quantity for Ben to order? |
| b) At what inventory level should he place an order? |
Problem 3
| Problem 3: |
| Retailers Warehouse (RW) is an independent supplier of household items to department stores. RW attempts to stock enough itmes for a 98% service probability. |
| A stainless steel knife set is one item it stocks. Demand (2,400 sets per year) is relatively stable over the entire year. Whenever new stock is ordered, a buyer must assure that numbers are correct for stock on hand |
| and then phone in a new order. The total cost involved to place an order is about $5. RW figures that holding inventory in stock and paying for interest on borrowed capital, insurance, and so on, add up to about $4 |
| holding cost per unit per year. |
| Analysis of the past data shows that the standard deviation of demand from retailers is about four units per day for a 365-day year. Lead time to get the order is seven days. |
| a) What is the economic order quantity? |
| b) What is the reorder point? |
Problem 4
| Problem 4: | ||
| The following table gives the operation times and due dates for five jobs which are to be processed on a machine. Assign the jobs according to the shortest operation time and calculate the mean flow time. | ||
| Job | Processing Time | Due Date (Days Hence) |
| 101 | 6 days | 5 |
| 102 | 7 days | 3 |
| 103 | 4 days | 4 |
| 104 | 9 days | 7 |
| 105 | 5 days | 2 |
Problem 5
| Problem 5: | ||
| The following table contains information regarding jobs that are to be scheduled through one machine: | ||
| Job | Processing Time (Days) | Due Date |
| A | 4 | 20 |
| B | 12 | 30 |
| C | 2 | 15 |
| D | 11 | 16 |
| E | 10 | 18 |
| F | 3 | 5 |
| G | 6 | 9 |
| a) What is the first-come, first-served (FCFS) schedule? | ||
| b) What is the shortest operating time (SOT) schedule? | ||
| c) What is the slack time remaining (STR) schedule? | ||
| d) What is the earliest due date (EDD) schedule? | ||
| e) What are the mean flow times for each of the schedules above? | ||
Problem 6
| Problem 6: | ||
| Jobs A, B, C, D, and E must go through Processes I and II in that sequence (Process I first, then Process II). Use Johnson’s rule to determine the optimal sequence which to schedule the jobs to minimize the total required time. | ||
| Job | Required Processing Time on I | Required Processing Time on II |
| A | 4 | 5 |
| B | 16 | 14 |
| C | 8 | 7 |
| D | 12 | 11 |
| E | 3 | 9 |
| Extra Credit: Use Johnson’s rule to determine the optimal sequence in which to schedule the jobs to minimize the total required time. | ||
