Page < 2 > of 3 - ZOOM + 1. Determine the net requirements of the phones for the first 6 months. 2. Determine the production orders (dates & quantities) for the cover assuming that one uses the Fixed Order Quantity policy. For this calculation, you can assume that the setup cost for the production line is $750. The company uses a holding cost based on a 10 percent annual interest rate. Each cover costs the company $10 in materials. You can also assume there is a scheduled receipt in week 2 of 10000 units and an initial inventory of 12000 units. Write down the MRP record and compute the total costs induced by this plan over the planning horizon. 3. Determine the production orders (dates & quantities) for the production of the electronics using the Part period balancing policy. For this calculation, suppose that the setup cost is $500 and the holding cost is $0.01 per unit per week. Assume 1 Page < 3 of 3 - ZOOM + there is a scheduled receipt in week 3 of 13000 units and an initial inventory of 5000 units. Write down the MRP record and compute the total cost induced by this plan over the planning horizon. 4. Now consider the MRP calculations for the memory chips. Assume that the company expects an inventory level of 100000 memory chips at the end of week 0 and a receipt from an outside supplier of 80000 units at the start of week 5. Determine the production orders (dates & quantities) for the memory chips by the Silver-Meal Heuristic. For this calculation, use a setup cost of $750 and a holding cost of $0.02 per memory chip per week. Write down the MRP record and compute the total cost induced by this plan over the planning horizon. Page < 2 > of 3 - ZOOM + At DIGITAL CELL PHONE, INC you produce phones, which are shipped to the customers in cases of 144 units. Figure shows the BOM for the construction of a single phone. Phone Cover (1) Electronics (1) Lead Time: 2 weeks Lead Time: 1 week Memory chips (3) Lead Time: 2 weeks Integrated circuits (3) Lead Time: 1 week Battery (1) Lead Time: 1 week Figure 1: Bill of material for a phone. Three memory chips, three integrated circuits and one battery are required to assembly all electronics. The production of the plastic case requires two weeks. The Integrated circuits and the battery require one week of production, whereas the memory chips take two weeks. As you see, the phone assembly problem is a three-level MRP system. You computed the predicted demand for the upcoming 12 months during the forecasting tutorial. You can focus on the first 6 months solely. Moreover, assume that each month consists out of exactly four weeks, and that demand can be split evenly over these weeks. Be careful, as your forecasts were done at case level! The company expects several scheduled receipts: 35000 phones in week 1, 15000 in week 3 and 10000 in week 4. In addition to the scheduled receipts, the company currently has 60000 phones in inventory (end of week 0). Consider there is no lead time for the final assembly of the components (so, you can use the lot-for-lot policy).