EMGT 5330 Service & Operations Management

1. Assume all Lot-For-Lot ordering policy below. Product A is an end item and has the following bill of material information. If 100 units of A are required in Week 10, develop the MRP planning schedule, specifying when A and B and C are to be ordered and received. There are currently no units of inventory on hand (10)

	Period:	1	2	3	4	5	6	7	8	9	10
Item: A OH: 0 LT: 1 Q:L4L	Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order receipts
Planned order releases

	Period:	1	2	3	4	5	6	7	8	9	10
Item: B OH: 0 LT: 2 Q:L4L	Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order receipts
Planned order releases

	Period:	1	2	3	4	5	6	7	8	9	10
Item: C OH: 0 LT: 2 Q:L4L	Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order receipts
Planned order releases

2. Solve the following problem (20)

Complete the following SOP table using the Leveling strategy. Note that the actual inventory at the end of last year is 100 units, and your actual number of employees at the end of last December was 8. Use the following data, and compute the all costs associated with this level strategy.

Hiring cost is $200 per employee

Firing cost is $500 per employee

Inventory holding cost per item per day is $15

Required number of hours per unit is 2 hour/unit

Labor rate per employee is $124 per day

Material cost per item is $30

Please count inventory cost only for working days given

Each employee is working 8 hours per day.

Note that any inventory shortage is not allowed

3. You would like to develop a pull production system in your shop floor. For one process ?P001? producing small springs for a pen, the daily demand is 150 units. Whenever you order the raw material for this spring manufacturing, you need to wait 6 days. One day, your boss asked how many bins of size 100 (a bin can store up to 100 springs) your department needs to carry in this process P001. Based on historical analysis, your department keeps 10% safety stock to prevent any inventory shortage during the order lead time (6 days). If needed, assume that 1 year = 365 days. Hint: think of the order lead time and lead time demand (15)

a. How many beans does your department need to carry?

b. Ordering cost for bins is $200 regardless of the number of bins ordered, and the inventory carrying cost for a bin (regardless of the number of springs in the bin) is $200 per day. What is the number of bins to minimize the total cost in terms of the EOQ?

c. What do you need to do to make your answer in (a) economical based on EOQ in (b)? This is a numerical question. You should be specific using the ordering cost, inventory cost or demand etc.

4. You have just complete a pilot run of 10 units of a major product and found the processing time for each unit was as follows: (15)

a. According to the pilot run, what would you estimate the learning rate to be?

b. Based on a, how much time would it take for the next 190 units, assuming no loss of learning?

c. How much time would it take to make the 1,000^th unit?

EMGT 5330 Service & Operations Management 1. Assume all Lot-For-Lot ordering policy below. Product A is an end item and has the following bill of material information. If 100 units of A are required in Week 10, develop the MRP planning schedule, specifying when A and B and C are to be ordered and received. There are currently no units of inventory on hand (10) Level A 0 B(2) D(3) Period: Item: A OH: 0 LT: 1 Q:L4L E(2) F(2) 2 E(2) 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Period: Item: B OH: 0 LT: 2 Q:L4L 1 C(4) Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases Period: Item: C OH: 0 LT: 2 Q:L4L Gross requirements Scheduled receipts Projected available balance Net requirements Planned order receipts Planned order releases 2. Solve the following problem (20) Complete the following SOP table using the Leveling strategy. Note that the actual inventory at the end of last year is 100 units, and your actual number of employees at the end of last December was 8. Use the following data, and compute the all costs associated with this level strategy. Hiring cost is $200 per employee Firing cost is $500 per employee Inventory holding cost per item per day is $15 Required number of hours per unit is 2 hour/unit Labor rate per employee is $124 per day Material cost per item is $30 Please count inventory cost only for working days given Each employee is working 8 hours per day. Note that any inventory shortage is not allowed 3. You would like to develop a pull production system in your shop floor. For one process \"P001\" producing small springs for a pen, the daily demand is 150 units. Whenever you order the raw material for this spring manufacturing, you need to wait 6 days. One day, your boss asked how many bins of size 100 (a bin can store up to 100 springs) your department needs to carry in this process P001. Based on historical analysis, your department keeps 10% safety stock to prevent any inventory shortage during the order lead time (6 days). If needed, assume that 1 year = 365 days. Hint: think of the order lead time and lead time demand (15) a. How many beans does your department need to carry? b. Ordering cost for bins is $200 regardless of the number of bins ordered, and the inventory carrying cost for a bin (regardless of the number of springs in the bin) is $200 per day. What is the number of bins to minimize the total cost in terms of the EOQ? c. What do you need to do to make your answer in (a) economical based on EOQ in (b)? This is a numerical question. You should be specific using the ordering cost, inventory cost or demand etc. 4. You have just complete a pilot run of 10 units of a major product and found the processing time for each unit was as follows: (15) Unit Number Time (hrs) 1 970 2 640 3 420 4 380 5 320 6 250 7 220 8 207 9 190 10 190 a. According to the pilot run, what would you estimate the learning rate to be? b. Based on a, how much time would it take for the next 190 units, assuming no loss of learning? c. How much time would it take to make the 1,000 th unit