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Answer Assignment Problem14

The document contains inventory planning problems and solutions. Problem 1 involves calculating the economic order quantity (EOQ) and developing a lot-sizing plan. Problem 2 clubs demands into periods equal to the time between orders and develops an alternative lot-sizing plan. The lot-for-lot policy has the lowest total cost of $800.

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khoikinkin2004
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23 views8 pages

Answer Assignment Problem14

The document contains inventory planning problems and solutions. Problem 1 involves calculating the economic order quantity (EOQ) and developing a lot-sizing plan. Problem 2 clubs demands into periods equal to the time between orders and develops an alternative lot-sizing plan. The lot-for-lot policy has the lowest total cost of $800.

Uploaded by

khoikinkin2004
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Problem14.

12

a,

b)

LEVEL 1 Period in Weeks

Item ID: B 1 2 3 4 5 6 7 8

Lot Size:L4L Gross Requirements 0 0 0 0 0 0 200 0

Scheduled Receipts 0 0 0 0 0 0 0 0

Lead Time:2 On Hand 100 100 100 100 100 100 100 100 0

Net Requirements 0 0 0 0 0 0 100 0

Safety Planned Order


0 0 0 0 0 0 100 0
Stock:0 Receipts

Planned Order 0 0 0 0 100 0 100 0


Releases

Period in Weeks

Item ID: C 1 2 3 4 5 6 7 8

Lot Size:L4L Gross Requirements 0 0 0 0 0 0 200 200

Scheduled Receipts 0 0 0 0 0 0 0 0

Lead Time:2 On Hand 50 50 50 50 50 50 50 50 0

Net Requirements 0 0 0 0 0 0 150 200

Safety Planned Order


0 0 0 0 0 0 150 200
Stock:0 Receipts

Planned Order
0 0 0 0 150 200 100 100
Releases

Period in Weeks

Item ID: J 1 2 3 4 5 6 7 8

Lot Size:L4L Gross Requirements 0 0 0 0 0 0 0 100

Scheduled Receipts 0 0 0 0 0 0 0 0

Lead Time:2 On Hand 100 100 100 100 100 100 100 100 100

Net Requirements 0 0 0 0 0 0 0 0

Safety Planned Order


0 0 0 0 0 0 0 0
Stock:0 Receipts
Planned Order
0 0 0 0 0 0 0 50
Releases

Period in Weeks

Item ID: K 1 2 3 4 5 6 7 8

Lot Size:L4L Gross Requirements 0 0 0 0 0 0 0 100

Scheduled Receipts 0 0 0 0 0 0 0 0

Lead Time:2 On Hand 100 100 100 100 100 100 100 100 100

Net Requirements 0 0 0 0 0 0 0 0

Safety Planned Order


0 0 0 0 0 0 0 0
Stock:0 Receipts

Planned Order
0 0 0 0 0 0 0 50
Releases

LEVEL 2 Period in Weeks

Item ID: D 1 2 3 4 5 6 7 8

Lot Size:L4L Gross Requirements 0 0 0 0 100 0 100 0

Scheduled Receipts 0 0 0 0 0 0 0 0

Lead Time:1 On Hand 50 50 50 50 50 50 50 50 0

Net Requirements 0 0 0 0 100 0 50 0

Safety Stock:0 Planned Order Receipts 0 0 0 0 100 0 50 0

Planned Order 0 0 0 100 0 50 0 30


Releases

Period in Weeks

Item ID: E 1 2 3 4 5 6 7 8

Lot Size:L4L Gross Requirements 0 0 0 0 100 0 100 10

Scheduled Receipts 0 0 0 0 0 0 0 0

Lead Time:2 On Hand 75 75 75 75 75 75 75 75 -25

Net Requirements 0 0 0 0 100 0 0 12

Safety Stock:0 Planned Order Receipts 0 0 0 0 100 0 0 12

Planned Order
0 0 100 0 0 125 300 0
Releases

Period in Weeks

Item ID: F 1 2 3 4 5 6 7 8

Lot Size:L4L Gross Requirements 0 0 0 0 300 400 200 30

Scheduled Receipts 0 0 0 0 0 0 0 0

Lead Time:2 On Hand 75 75 75 75 75 75 0 0 0

Net Requirements 0 0 0 0 225 400 0 30

Safety Stock:0 Planned Order Receipts 0 0 0 0 225 400 0 30

Planned Order 0 0 225 400 0 300 600 0


Releases

Period in Weeks

Item ID: G 1 2 3 4 5 6 7 8

Lot Size:L4L Gross Requirements 0 0 0 0 150 200 100 15

Scheduled Receipts 0 0 0 0 0 0 0 0

Lead Time:1 On Hand 75 75 75 75 75 75 0 0 0

Net Requirements 0 0 0 0 75 200 100 15

Safety Stock:0 Planned Order Receipts 0 0 0 0 75 200 100 15

Planned Order
0 0 0 75 200 100 150 30
Releases

Problem14.26

1.

Period 1 2 3 4 5 6 7 8 9 Total

Demand 0 15 0 20 0 10 0 0 25

Planned receipt 0 15 0 20 0 10 0 0 25

Planned release 15 0 20 0 10 0 0 25 0

Beginning Inv. 0 0 0 0 0 0 0 0 0
Ending Inv. 0 0 0 0 0 0 0 0 0

$20
Setup cost $200 $0 $200 $0 $0 $0 $200 $0 $800
0

Carrying cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Stockout cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$800

2.

Average weekly demand (D) = (0+15+0+20+0+10+0+0+25)/9 = 7.778

Holding cost per item per week (H) = $10

Setup cost (S) = $200

EOQ = (2.D.S/H)1/2 = SQRT(2*7.778*200/10) = 17.64 or 18 (rounded off)

Period 1 2 3 4 5 6 7 8 9 Total

Demand 0 15 0 20 0 10 0 0 25

Planned receipt 0 18 0 18 0 18 0 0 18

Planned
18 0 18 0 18 0 0 18 0
release

Beginning Inv. 0 0 3 3 1 1 9 9 9

Ending Inv. 0 3 3 1 1 9 9 9 2

Setup cost $200 $0 $200 $0 $200 $0 $0 $200 $0 $800


$9
Carrying cost $0 $30 $30 $10 $10 $90 $90 $20 $370
0

Stockout cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$1,170

(c)

Time between orders (TBO) = EOQ/D = 17.64 / 7.778 = 2.26 or 2 (rounded


off). So, club the demands for the two

periods starting from period 2.

Period 1 2 3 4 5 6 7 8 9 Total

Demand 0 15 0 20 0 10 0 0 25

Planned receipt 0 15 0 20 0 10 0 25 0

Planned release 15 0 20 0 10 0 25 0 0

Beginning Inv. 0 0 0 0 0 0 0 0 25

Ending Inv. 0 0 0 0 0 0 0 25 0

Setup cost $200 $0 $200 $0 $200 $0 $200 $0 $0 $800

Carrying cost $0 $0 $0 $0 $0 $0 $0 $250 $0 $250

Stockout cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$1,050

(d)

Lot-for-lot is the lowest cost plan with total cost = $800.

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