Problem 1

Aerial Products has produced 100 airframes with the following mix data.  Perform a complete SPC analysis identifying if the process is in control, if the process is capable and identifying the reason the process is out of or in control and is or is not capable.

Problem 2

Using the data from Problem 1 establish a forecast for material for five years where the demand for airframes is (Yr.1 = 200, Yr.2 = 50, Yr. 3 = 100, Yr. 4 = 500 and Yr. 5 = 250).  If the costs for materials fluctuate by 5% per year, establish if purchasing ahead of time is cheaper if storage costs vary by 10% per year, where Year 1 storage costs are $300 for each of the key ingredients.

Problem 3

Based on the results of Problems 1, 2 and 3  determine the EOQ for the material, the amount of safety stock and annual carrying costs based on the data.