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Find a better schedule by reducing the number of orders and carrying some inventory. What are the savings with this new schedule? Please answer this

Find a better schedule by reducing the number of orders and carrying some inventory. What are the savings with this new schedule?

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PART COST Gear Box Setup $90/order Inventory carrying cost = $2/unit/week Input Shaft Setup $45/order Inventory carrying cost = $1/unit/week Model 1000 master schedule Week 1 2 3 4 5 6 789 10 1 12 Demand 15 57 10 15 20 10 8 216 Model 1000 product structure Engine assembly Gear box Lead time 2 weeks Used: 1 per engine Crankcase Input shaft Lead time 3 weeks Used: 2 per gear box Engine assembly master schedule Week Quantity 2 3 4 5 6 7 89 10 11 12 Gear box requirements Week Gross requirements Scheduled receipts Projected available balance Net requirements Planned order release 2345 67 8 9 10 11 12 Input shaft requirements Week Gross requirements Scheduled receipts Projected available balance Net requirements Planned order release Engine Assembly Master Schedule 12 16 10 Week 15 10 15 10 Quantity Lead Time Gear box requirements 12 16 10 Week Gross Requirements Scheduled Receipts Projected Available Balance Net Requirements Planned Order Receipt Planned Order Release 15 10 15 10 18 16 10 15 From E12 for 2 Weeks Lead Time Input shaft requirements 12 10 0 Week Gross Requirements Scheduled Receipts Projected Available Balance Net Requirements Planned Order Receipt Planned Order Release 0 0 0 32 0 0 0 10 32 From F24 for 3 Weeks Lead Time Part 2 Gear Box Given Information Setup per order- Inventory Carrying Cost per unit per p Number of orders (count cells with values for planned order release) Set-up Costs-# of Orders X Setup Costs 3*90) Inventory (88) Inventory Carrying Cost Total 90.00 $2.00 sum of projected available balance $0.00 Input Shaft Given Information Setup per order- Inventory Carrying Cost per unit per p $45.00 1.00 Setup Costs-2 orders 45 Inventory (74)1 Total 0.00 Total Cost 0.00

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