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Product A is an end item and is made from two units of B

Product A is an end item and is made from two units of B and four of C. B is made of three units of D and two of E. C is made of two units of F and two of E. A has a lead-time of one week. B, C, and E have lead times of two weeks, and D and F have lead times of three weeks. Show the bill of materials (product tree structure).

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Your response should be at least 75 words in length.

Question 2

1.

You have a business in which you sell very inexpensive items and very expensive items. Would you use a fixed-time period or a fixed-quantity period model to order the expensive items? Explain your decision.

Your response should be at least 75 words in length.

Question 3

1.

Dunstreet’s Department Store would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 5,000 per year. The store is open 365 days per year. Every two weeks inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. Standard deviation of demand for the sheets is five per day. There are currently 150 sheets on hand. How many sheets should you order?

Your response should be at least 75 words in length.

Question 4

1.

Discuss the importance of the master production schedule in an MRP system.

Your response should be at least 75 words in length.

Question 5

1.

The question of flexibility within a master production schedule depends on several factors. Unless some operating rules are established and adhered to, the system could become chaotic. What techniques does management use to maintain a reasonably controlled flow through the production system?

Your response should be at least 75 words in length.

uestion 6

1.

Holding cost is handled differently in MRP and EOQ models. Describe those differences.

Your response should be at least 75 words in length.

Question 7

1.

If you are in the business of making roller skates, would the wheels needed be dependent or independent on the production levels? Would the demand for roller skates be dependent or independent?

Your response should be at least 75 words in length.

Question 8

1.

How does MRP relate to CIM? Hint: In addition to the reading assignment refer to Appendix B in the textbook.

Your response should be at least 75 words in length.

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