What is the eoq for fiber glass and reinforced plastic

Assignment Help Operation Management

Reference no: EM13967780

Question # 1

French Wind manufactures the blades for wind turbines from a glass fiber reinforced plastic. The suppliers of the glass fiber and reinforced plastic send the raw materials to French Wind in cases, where one case of glass fiber requires two cases of reinforced plastic. Glass fiber is being consumed at steady rate of 2000 cases per year and has a cost per case of $1500. Reinforced plastic on the other hand has a unit cost of $300 per case. French wind has a 35% annual holding cost rate on all their inventory. The setup/order cost for glass fiber is $200 while for reinforced plastic there is a $650 order cost. Over the duration of a year French Wind is open for 340 days.

Find the following:

a) What is the EOQ for fiber glass and reinforced plastic?

b) What is the periodic interval that orders have to be made for both raw materials (in days)? Do you think they could share delivery trucks?

c) What is the optimum annual cost for fiber glass and reinforced plastic?

d) An error was made in on the lot size for fiber glass and reinforced plastic. The new lot sizes are 55 cases for fiber glass and 315 case for reinforced plastic. Calculate the annual cost for both fiber glass and reinforced plastic.

e) Mathematically compare the actual to optimal cost you got in parts (c) and (d). Explain from the perspective of sensitivity to changes in Q?

Question #2

In the table below is a production schedule for a manufacturer. You have been hired on to figure out the optimal 6 month production schedule using the Wagner-Whitin Algorithm. Explain the rationale behind the answer you found and what is the most dominant variable in your calculations?

Period (t)	1	2	3	4	5	6
Demand (D_t)	1000	300	500	200	800	1000
Unit Cost (c_t)	21	21	21	21	21	21
Setup Cost (At)	326	326	326	326	326	326
Holding Cost (h_t)	54	54	54	54	54	54

Question #3

The manager of a Cummings engine manufacturing facility has collected some historical data on the monthly demand of hemi-diesel engines (See table 1)

Table 1
Period	Monthly Demand
January	240
February	150
March	350
April	297
May	497
June	566
July	200
August	450
September	300
October	240
November	300
December	350

The unit cost of an engine is $3000 and there is a 30% interest rate associated with the holding cost. It takes 6 weeks for a replenishment order to be placed. Every time the facility has to setup to make these engines the manager estimates a setup cost of around $250,000. The cost of backorders is about $150,000 per year and the manager is worried about this figure. Demand seems to be normally distributed and the manager would like to determine the following:

1) What is the annual demand of engines?

2) What is the economic order quantity?

3) What is the average demand of engines over the six week period for replenishment?

4) What is the standard deviation of the sample in table 1 (use the STDEV.S function in excel)

5) Determine the critical fractile of backorder cost. Use the following formula to determine this G(r* )= b/(b+h)

6) What the z score of this critical fractile (Hint use the NORMSINV function

7) What is the reorder point?

Reference no: EM13967780

Questions Cloud

Discuss the story and perspectives of this game : Observing, communicating, and participating in a virtual space is what we call cyber-ethnography. The researcher enters into an online environment to explore the communication, culture, and experiences that take place. Discuss the story and perspe..

Explain how it should be managed to protect : Identify the various cyber crimes that would apply in a business setting? Provide a scenario by way of example that will demonstrate to your colleagues a situation that might occur and explain how it should be managed to protect the business.

How did urbanization change the way humans lived : How do the Sumerians exemplify some of those changes?

Which one better accomplishes its purpose and how : Instead, your essay should analyze the author's and film's intent and identify universal themes, conflicts, and climaxes. Of the film and the reading , which one better accomplishes its purpose? How

What is the eoq for fiber glass and reinforced plastic : What is the EOQ for fiber glass and reinforced plastic. What is the periodic interval that orders have to be made for both raw materials (in days)? Do you think they could share delivery trucks. What is the optimum annual cost for fiber glass and rei..

What did the armistice provoke in germany : What happened after the initial successes of the Axis powers in late winter 1918?

Theoretical minimum number of workstations : a. What is the takt time for each line? What is the theoretical minimum number of workstations needed on each line? b. Make workstation assignments using the "largest eligible task" rule. Calculate the cycle time, idle time, per- cent idle time, an..

Identify a particular cultural myth that you believe : Using concepts from class readings and discussions, identify a particular cultural myth that you believe to be visible and/or prevalent in society. Choose a site that you feel will allow you to clearly and effectively demonstrate the myth you have ..

What is the voltage at the terminals of the generator : Suppose the transformer in this power system is changed from a Y-Y to a Y-D, with the Y-connection solidly grounded. Nothing else changes in the power system. Now suppose that a single-line-to-ground fault occurs on the 138 kV transmission line ne..

User Account

All Pages