Question 1 A fast-food restaurant can produce 300 apple pies per day. Each production run costs $180, and the holding cost is $5 per apple pie per year. The restaurant operates 365 days in a year and the annual demand of apple pie is 37500. ( a ) Determine the optimal production quantity. ( b ) At the optimal level of production, determine the length of each inventory cycle (in days) and the length of each production phase in each cycle (in days). Question 2 A company produces two products, X and Y. Each unit of X requires two units of component A, and each unit of Y requires three units of component A. To make a unit of A, two units of component B are required. While there is no lead time for producing X and Y, the lead times for producing a unit of A and B are 1 week and 2 weeks, respectively. Currently, there are 10 units of X, 100 units of A, and 400 units of B in stock. The following table gives the gross requirements for the products X and Y, respectively, during the next 6-week period.

Week 1 2 3 4 5 6

Product X 0 20 0 40 10 40

Product Y 0 0 80 10 50 50

Using the lot-for-lot technique, compute the entries for "planned order released" for components A and B, respectively, over the 6-week period.

Question 3 Jetco Company manufactures a product according to the demand (gross requirement) specified in the following table over the next 8-week period.

Week 1 2 3 4 5 6 7 8

Demand 30 40 50 0 60 70 0 20

Suppose the production lead time is 2 weeks, and there are 100 units of the product on-hand. Assume that the setup cost of producing the product is $200 and the holding cost of one unit of the product for one week is $1.50, (a) complete the net requirement plan table using the EOQ technique; (b) complete the net requirement plan table using the POQ technique.

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Format of the net requirement plan table:

Week 1 2 3 4 5 6 7 8

Gross Requirement

Scheduled receipts

Onhand

Net requirements

Planned order receipts

Planned order released