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    Aditya Jandial
    The document discusses ABC analysis and inventory classification. It provides inventory data including item demand, price, dollar value, demand percentage, and value percentage. Based on this data, items 3, 4, and 5 contribute the maximum dollar volume and are classified as Category A. Items 7 and 9 are classified as Category B, and the remaining items are classified as Category C. The document also discusses economic order quantity calculations and workstation layout and efficiency for a production process.

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    Solution

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    Aditya Jandial
    49 views5 pages
    The document discusses ABC analysis and inventory classification. It provides inventory data including item demand, price, dollar value, demand percentage, and value percentage. Based on this data, items 3, 4, and 5 contribute the maximum dollar volume and are classified as Category A. Items 7 and 9 are classified as Category B, and the remaining items are classified as Category C. The document also discusses economic order quantity calculations and workstation layout and efficiency for a production process.

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    The document discusses ABC analysis and inventory classification. It provides inventory data including item demand, price, dollar value, demand percentage, and value percentage. Based on this data, items 3, 4, and 5 contribute the maximum dollar volume and are classified as Category A. Items 7 and 9 are classified as Category B, and the remaining items are classified as Category C. The document also discusses economic order quantity calculations and workstation layout and efficiency for a production process.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    49 views5 pages

    Solution

    Uploaded by

    Aditya Jandial
    The document discusses ABC analysis and inventory classification. It provides inventory data including item demand, price, dollar value, demand percentage, and value percentage. Based on this data, items 3, 4, and 5 contribute the maximum dollar volume and are classified as Category A. Items 7 and 9 are classified as Category B, and the remaining items are classified as Category C. The document also discusses economic order quantity calculations and workstation layout and efficiency for a production process.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 5

    Section B

    1. Page 4
    For ABC analysis, the proportion of inventory and proportion of Inventory KD value
    should be computed.

    Avg
    Item Demand Price Dollar Value Demand % Value % Category

    1 700 6.00 4,200 4.64% 2.77% C

    2 200 4.00 800 1.32% 0.53% C

    3 2,000 12.00 24,000 13.25% 15.84% A

    4 1,100 20.00 22,000 7.28% 14.52% A

    5 4,000 21.00 84,000 26.49% 55.45% A

    6 100 10.00 1,000 0.66% 0.66% C

    7 3,000 2.00 6,000 19.87% 3.96% B

    8 2,500 1.00 2,500 16.56% 1.65% C

    9 500 10.00 5,000 3.31% 3.30% B

    10 1,000 2.00 2,000 6.62% 1.32% C

    Total 15,100 151,500

    Item 3 4 and 5 contribute maximum of the total dollar volume,they would be classified as
    Category A,followed by 7 and 9 under Category B and remaining at category C,

    Ite Cumulative
    m Demand % Value % Inventory Cumulative Value

    5 26.49% 55.45% 26.49% 55.45%

    3 13.25% 15.84% 39.74% 71.29%

    4 7.28% 14.52% 47.02% 85.81%

    7 19.87% 3.96% 66.89% 89.77%


    9 3.31% 3.30% 70.20% 93.07%

    1 4.64% 2.77% 74.83% 95.84%

    8 16.56% 1.65% 91.39% 97.49%

    10 6.62% 1.32% 98.01% 98.81%

    6 0.66% 0.66% 98.68% 99.47%

    2 1.32% 0.53% 100.00% 100.00%

    The above table represents the cumulative inventory as well as Volume in KD.

    2. Page 5
    A.

    2B
    Q4 Page 7

    4A
    4B.
    Total Sec = 8*60*60
    Trucks per day = 600
    Cycle time = 8*60*60/600 = 48 secs

    4C.
    No. process time =236
    Cycle Time = 48
    No. of WS = 236/48 = 4.92 or 5 WS

    4D.

    WS 1= A & B
    WS2 = C & D
    WS3 = E F J
    WS4 = G H
    WS5 = I
    WS6 = K

    4E. Efficiency = 236/(5*48) = 98.33%


    4F= Idle Time = (48*5) -236 = 4 secs

    5.
    A. EOQ = Srt (2*D*S/H) = Sqrt (2*160*6*52*35/11) = 564 Units
    B. No. of orders = D/EOQ = (160*6*52)/32 = 88.5 or 86 times
    C.
    D. Total cost = 86*35 + 564/2*11 = 6200
    E. ROP = 160*5 = 800
    F. ROP (Safety stock = 4 days) = 160*9 = 1440

    3.

    Given D = 200000
    S = 300
    H = 15%

    Assuming Price = 2.35


    H = 2.35*15% = 0.3525

    EOQ = SQRT (2DS/H) = 18,451. Since this EOQ is more than 9999, at the price of 2.35. The
    price assumed is invalid.

    Assuming Price = 2.20


    H = 2.20*15% = 0.33
    EOQ = SQRT (2DS/H) = 19,069. The EOQ is within the range (10,000 - 29,999), at the price of
    2.20.

    Assuming Price = 2.15


    H = 2.15*15% = 0.3225

    EOQ = SQRT (2DS/H) = 19,290. The EOQ is lower than the minimum quantity of 30,000, at the
    price of 2.15. Thus this price is invalid.

    Thus EOQ = 19,069 units.  

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