MAN 4504: OPERATIONS & SUPPLY CHAIN MANAGEMENT Assignment 4 - One submission per GROUP All questions' available grades are equally distributed (46.6 % each) The take-home assignments should be worked on among your randomly assigned group. Note: A solution without detailed explanation/calculation will get no more than I point out of 100. Problem 1. A large law rm uses an average of 40 boxes of copier paper a day. The rm operates 260 days a year. Storage and handling costs for the paper are $30 a year per box. and it costs approximately $60 to order and receive a shipment of paper. a. What order size would minimize the sum of annual ordering and carrying costs? b. Compute the total annual cost using your order size from part a. Problem 2. A bakery buys flour in 25-pound bags. The bakery uses 1.215 bags a year. Ordering cost is $10 per order. Annual carrying cost is $75 per bag. a. Determine the economic order quantity. b. What is the average number of bags on hand? c. How many orders per year will there be? (1. Compute the total cost of ordering and carrying flour. e. If holding costs were to increase by $9 per year, how much would that affect the minimum total annual cost? Problem 3. A hot dog company can produce hot dogs at a rate of 5,000 per day. The company supplies hot dogs to local restaurants at a steady rate of 250 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year. Find a. The optimal run size. b. The number of runs per year. c. How many days does it take to produce the optimal run quantity? Problem 4. A company is about to begin production of a new product. The manager of the department that will produce one of the components for the product wants to know how often the machine used to produce the item will be available for other work. The machine will produce the item at a rate of 200 units a day. Eighty units will be used daily in assembling the nal product. Assembly will take place ve days a week, 50 weeks a year. The manager estimates that it will take almost a full day to get the machine ready for a production run, at a cost of $300. Inventory holding costs will be $10 a year. a. What run quantity should be used to minimize total annual costs? b. How many days does it take to produce the optimal run quantity? c. What is the average amount of inventory? Problem 5. For the diagram below find the critical path, the duration of the project, and calculate the slack for each task, including each tasks' ES, EF, LS and LF. 7 4 'b 77 6 '0 / 4 5 CED/9' 3 '2) %W0