Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well. ... Plan manufacturing activities, delivery schedules and purchasing activities.
Kattareeya Prompreing
白雅欣
iD:DA61G209
(Student in Ph.D. Business and Management, College Business, STUST
email:da61g209@stust.edu.tw
: katt.rmutl@gmail.com
MRP System Structure (Input and Output)
Master Production Schedule (MPS)
Bill of Material (BOM)
Inventory Records File
MRP Terminology
MRP Explosion Process
MRP Management
MRP and JIT
Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well. ... Plan manufacturing activities, delivery schedules and purchasing activities.
Kattareeya Prompreing
白雅欣
iD:DA61G209
(Student in Ph.D. Business and Management, College Business, STUST
email:da61g209@stust.edu.tw
: katt.rmutl@gmail.com
MRP System Structure (Input and Output)
Master Production Schedule (MPS)
Bill of Material (BOM)
Inventory Records File
MRP Terminology
MRP Explosion Process
MRP Management
MRP and JIT
INVENTORY MANAGEMENT:
What is inventory?
Why do we care for inventory?
What do you consider regarding inventory?
Cost of inventory
Benefits of inventory
Modelling inventory in supply chain
Types of inventory models
This presentation explains about the Operations Management concept Reorder point, different cases with examples, fixed order interval model, single period model etc.
References:
Inventory Control Models, 2013 Pearson Education, Inc. publishing as Prentice Hall
Special Inventory Models, 2010 Pearson Education, Inc. publishing as Prentice Hall
6.3 Further Business Applications: Economic Lot Size
Dr. Grethe Hystad, Mathematics Department, The University of Arizona (www.math.arizona.edu)
Business Dictionary (www.businessdictionary.com)
INVENTORY MANAGEMENT:
What is inventory?
Why do we care for inventory?
What do you consider regarding inventory?
Cost of inventory
Benefits of inventory
Modelling inventory in supply chain
Types of inventory models
This presentation explains about the Operations Management concept Reorder point, different cases with examples, fixed order interval model, single period model etc.
References:
Inventory Control Models, 2013 Pearson Education, Inc. publishing as Prentice Hall
Special Inventory Models, 2010 Pearson Education, Inc. publishing as Prentice Hall
6.3 Further Business Applications: Economic Lot Size
Dr. Grethe Hystad, Mathematics Department, The University of Arizona (www.math.arizona.edu)
Business Dictionary (www.businessdictionary.com)
very useful and nice interpretation of EOQ by Ken Homa
Optimal order qty
expected numbers of order.
expected time between orders
ordering cost
annual demand
holding cost
Home Work; Chapter 9; Inventory Policy DecisionsShaheen Sardar
Book reference: Ballou, Ronald H. (2004). “Business Logistics/ Supply Chain Management: Planning, Organizing, and Controlling the Supply Chain.” (5th Edition).
Original reference of this document: http://wweb.uta.edu/insyopma/prater/ballou09_im.pdf
CMA MAY 2022 EXAMINATION
INTERMEDIATE LEVEL II
Subject: CM231. MANAGEMENT ACCOUNTING
Model Solution CM231.-MAC-IL-II-Solution-CMA-May-2022-Examination.pdf
Problem 6-2A manager wants to assign tasks to workstations as .docxsleeperharwell
Problem 6-2
A manager wants to assign tasks to workstations as efficiently as possible, and achieve an hourly output of 331/3 units. Assume the shop works a 60-minute hour. Assign the tasks shown in the accompanying precedence diagram (times are in minutes) to workstations using the following rules:
a.
In order of most following tasks. Tiebreaker: greatest positional weight.
Work Station
Tasks
I
II
III
IV
b.
In order of greatest positional weight.
Work Station
Tasks
I
II
III
IV
c.
What is the efficiency? (Round your answer to 2 decimal places. Omit the "%" sign in your response. )
Efficiency
%
Problem 6-3
A manager wants to assign tasks to workstations as efficiently as possible, and achieve an hourly output of 4 units. The department uses a working time of 56 minutes per hour. Assign the tasks shown in the accompanying precedence diagram (times are in minutes) to workstations using the following rules:
a.
In order of most following tasks. Tiebreaker: greatest positional weight.
Work Station
Tasks
I
II
III
IV
b.
In order of greatest positional weight.
Work Station
Tasks
I
II
III
IV
c.
What is the efficiency? (Round your answer to 2 decimal places. Omit the "%" sign in your response. )
Efficiency
%
Problem 6-8
A shop works a 400-minute day. The manager of the shop wants an output of 200 units per day for the assembly line that has the elemental tasks shown in the table. Do the following:
Task
Immediate
Predecessor
Task Time (minutes)
a
-
0.5
b
a
1.4
c
a
1.2
d
a
0.7
e
b, c
0.5
f
d
1.0
g
e
0.4
h
g
0.3
i
f
0.5
j
e, i
0.8
k
h, j
0.9
m
k
0.3
b.
Assign tasks according to the most following tasks rule.
Work Station
Following Tasks
1
2
3
4
5
c.
Assign tasks according to the greatest positional weight rule.
Work Station
Following Tasks
I
II
III
IV
V
d.
Compute the balance delay for each rule. Which one yields the better set of assignments in this instance? (Omit the "%" sign in your response.)
Balance delay: both part b and c are
%
Problem 6-18
For the set of tasks given below, do the following:
Task
Task Time
(seconds)
Immediate
Predecessor
A
45
-
B
11
A
C
9
B
D
50
-
E
26
D
F
11
E
G
12
C
H
10
C
I
9
F, G, H
J
10
I
193
Assign tasks to stations for a desired output of 500 units in a 7-hour day to balance the line using the longest operation time heuristic. Break ties with the most following tasks heuristic. Calculate the percentage idle time for the line. Use the actual bottleneck cycle time in your calculation. (Round your percentage of idle time to 2 decimal places. Omit the "%" sign in your response.)
Work Station
Task
I
II
III
IV
Percentage of idle time
%
Problem 7-1
An analyst has timed a metal-cutting operation for 50 cycles. The average time per cycle was 10.9 minutes, and the standard deviation was 1.20 minutes for a worker with a performance rating of 139 percen.
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Inventory Management Self Study Exercises.pptx
1. Solved Problem 1
Nelson’s Hardware Store stocks a 19.2 volt cordless drill that is a popular
seller. Annual demand is 5,000 units, the ordering cost is $15, and the
inventory holding cost is $4/unit/year.
a. What is the economic order quantity?
b. What is the total annual cost for this inventory item?
SOLUTION
a. The order quantity is
EOQ = =
2DS
H
2(5,000)($15)
$4
= 37,500 = 193.65 or 194 drills
b. The total annual cost is
C = (H) + (S) =
Q
2
D
Q
($4) + ($15) = $774.60
194
2
5,000
194
2. Solved Problem 2
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Year 1 80 70 110 100 110 90 80 120 100 130 110 100
Year 2 120 130 50 70 120 100 90 70 100 80 140 140
For a product managed according to the Economic Order Quantity method,
the table shows monthly demand rates for the last two years
The product is bought at 20 Euros per unit. Set up cost is 105 Euros and
holding cost is 35% of the purchasing price.
Service level decided by management is 95%.
Delivery lead time is 1 month.
•Calculate EOQ, Number of orders and time between orders
•Calculate the reorder point ROP
•Trace the inventory profile
3. Solved Problem 2
Solution:
• Total demand of the 1st year: 1200 (sum of the 1st row)
• Total demand of the 2nd year: 1210 (sum of the 2st row)
• Mean year demand: D = (1200 + 1210)/2 = 1205 per year
• Mean monthly demand: d = (1200+1210)/24 = 100,4167 ≈ 100
prod/month
Economic Order Quantity:
• EOQ = = = 190,1315 ≈ 190
• Number of orders = D/EOQ = 1205/190 ≈ 6,3 orders per year
• Time between orders = EOQ / D = 0,15 year or similarly EOQ/D*(12
months/year) = 1,89 months ≈ 2 months
H
DS
2
35
,
0
20
105
1205
2
4. Solved Problem 2
Calculation of Reorder Point
• ROP = Average demand during lead time +
Safety Stock
• The lead time L is 1 month, and we also know
the mean monthly demand d. Therefore, the
average demand during lead time is d*L = 100.
5. Solved Problem 2
• We also need to determine the safety stock S. The formula for
the safety stock is S = z * standard deviation of the demand
during lead time (sd).
• The term z can be obtained from normal distribution tables. For
a given service level of 95% z = 1,645. On the other hand, the
monthly standard deviation of the demand can be calculated
from the table of the monthly demand rates using the formula
below.
86177
,
23
83
,
13095
23
1
)
(
1
1
1
2
n
i
i d
d
n
sd
Thereafter, S = 1,645*23,86177 = 39,2526 ≈ 40 products
As such, ROP = 100 + 40 = 140
To trace the inventory, we start at the replenishment level (which is
EOQ + safety stock) and we draw a graph similar to that of the slides.
6. Solved Problem 3
Our company manages an inventory of light bulbs. A particular lamp is
bought at 10 cents. Ordering cost is 150 cents and holding cost is 20% of
unit price per unit and year.
The factory works 12 months per year, steady production and
management requires an 80% service level for this particular item.
Delivery lead time from the supplier is 1,5 months.
The monthly demand over the last 24 months is as follows:
500, 500, 425, 425, 450, 425, 425, 475, 475, 425, 425, 425, 475, 525, 425,
425, 450, 475, 425, 425, 475, 450, 425, 425.
Compute the following:
• Economic order quantity
• Reorder point
7. Solved Problem 3
SOLUTION
• Total demand: 10800 (sum of 24months)
• Mean year demand: D = (10800)/2 = 5400 lamps per year
• Mean monthly demand: d = 5400/12 = 450 lamps/month
Economic Order Quantity:
• EOQ = = = 900 lamps
• Number of orders = D/EOQ = 5400/900 ≈ 6 orders per year
• Time between orders = EOQ / D = 0,167 year or approximately ≈ 2
months
H
DS
2
2
,
0
10
150
5400
2
8. Solved Problem 3
Calculation of Reorder Point
• ROP = Average demand during lead time + Safety Stock
• The lead time L is 1,5 month. The mean monthly demand d is 450.
Therefore, the average demand during lead time is d*L = 675.
9. Solved Problem 3
We also need to determine the safety stock S. The formula for the safety
stock is S = z * standard deviation of the demand during lead time (sd). The
term z can be obtained from normal distribution tables. For a given service
level of 80% z = 0,84. On the other hand, the monthly standard deviation of
the demand can be calculated from the table of the monthly demand rates
using the formula below.
• Thereafter, S = 0,84*sd* = 31,70 ≈ 32 lamps
• As such, ROP = 900 + 32 = 932
82134
,
30
)
(
1
1
1
2
n
i
i d
d
n
sd
10. Solved Problem 4
Grey Wolf Lodge is a popular 500-room hotel in the North Woods.
Managers need to keep close tabs on all room service items, including a
special pine-scented bar soap. The daily demand for the soap is 275 bars,
with a standard deviation of 30 bars. Ordering cost is $10 and the
inventory holding cost is $0.30/bar/year. The lead time from the supplier is
5 days, with a standard deviation of 1 day. The lodge is open 365 days a
year.
a. What is the economic order quantity for the bar of soap?
b. What should the reorder point be for the bar of soap if
management wants to have a 99 percent cycle-service level?
c. What is the total annual cost for the bar of soap, assuming a
Q system will be used?
11. Solved Problem 4
SOLUTION
a. We have D = (275)(365) = 100,375 bars of soap; S = $10; and H = $0.30.
The EOQ for the bar of soap is
EOQ = =
2DS
H
2(100,375)($10)
$0.30
= 6,691,666.7 = 2,586.83 or 2,587 bars
12. Solved Problem 4
b. We have d = 275 bars/day, σd = 30 bars, L = 5 days,
and σLT = 1 day.
σdLT = Lσd
2 + d2σLT
2 = (5)(30)2 + (275)2(1)2 = 283.06 bars
Consult the body of the Normal Distribution appendix for
0.9900. The closest value is 0.9901, which corresponds to
a z value of 2.33. We calculate the safety stock and reorder
point as follows:
Safety stock = zσdLT = (2.33)(283.06) = 659.53 or 660 bars
Reorder point = dL + Safety stock = (275)(5) + 660 = 2,035 bars
13. Solved Problem 4
c. The total annual cost for the Q system is
C = (H) + (S) + (H)(Safety stock)
Q
2
D
Q
C = ($0.30) + ($10) + ($0.30)(660) = $974.05
2,587
2
100,375
2,587