Reference no: EM131051628
Project and Presentation
Part -1:
1) Sharjah Rubber Company imports every year 24, 000 tires for trucks at a cost of Dhs 850 a piece. The lead-time is 3 weeks and the cost to process an order is Dhs 1,200. The holding cost per year for each tire is Dhs 85.
a) Compute the optimal order quantity.
b) Compute the reorder point.
2) Assume that Sharjah Rubber Company decides to manufacture tires instead of importing them. The production rate is 100 tires per day and the production cost is Dhs 700/tire. If we assume 250 working days per year and a production setup cost of Dhs 2,100, compute the optimal production lot size.
3) The annual demand of training shoes is 12,500 units. The cost to place an order is Dhs 150 and the holding cost is 20% per year of the cost of the pair of shoes. The purchase price schedule is as follows:
Less than 300 pairs Dhs 100
300 to 499 pairs Dhs 95
500 to 999 Dhs 90
1000 and more Dhs 85
Compute the economic order quantity.
Part -2:
1. The demand for subassembly S is 100 units in week 7. Each unit of S requires I unit of T and 2 units of U. Each unit of T requires 1 unit of V, 2 units of W, and 1 unit of X. Finally, each unit of U requires 2 units of Y and 3 units of Z. One firm manufactures all items. It takes 2 weeks to make S. 1 week to make T, 2 weeks to make U, 2 weeks to make V, 3 weeks to make W, 1 week to make X. 2 weeks to make Y. and 1 week to make Z.
a) Construct a product structure. Identify all levels, parents. and components.
b) Prepare a time-phased product stmcture.
2. Using the information in Problem 1, construct a net material requirements plan using the following on-hand inventory.
| ITEM |
ON-HAND INVENTORY
|
ITEM
|
ON-HAND INVENTORY |
| S |
20
|
W
|
30 |
|
T
|
20
|
X
|
25 |
| U |
40
|
Y
|
240 |
| V |
30
|
Z
|
40 |
|
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