# Question 1 Frankâ??s machine shop operates 250 days per year. Frank sells 5000 units per year of…

Question 1
Frankâ€™s machine shop operates 250 days per year. Frank sells 5,000 units
per year of his most popular item, a specialty gear. The set-up cost for this
gear is Â£100 and the monthly unit cost of holding inventory is 1% of the
production cost per unit, which is Â£50. The lead time is 10 days. When the gear
is being produced, the shop can make 80 gears per day (Hint: You
should use the production model for inventory management.).
Complete the following:
1.
How many
gears should be produced in each run and at what minimum cost?
2.
What is the
cycle time?
3.
Find the
reorder point.
4.
Draw a graph
to depict inventory level against time and show on it the quantities found
above. Also, what is the maximum inventory level?

Question 2
Complete the five discussion questions in the case study on page 444
(Dellâ€™s Value Chain) in the Heizer and Render (2011) textbook.

.jpg”>Week 8
Individual Project
The purpose of this simulation project is to provide you
with an opportunity to use the POM-QM for Windows software to solve an
MRP problem.
POM-QM for Windows software
For this part of the Individual Project, you need to use the
POM-QM for Windows software:
of the Operations Management (Heizer & Render, 2011) textbook.
Launch the POM-QM
for Windows software and from the main menu select Module, and
then Materials Resource Planning.
Program the MRP
for the Individual Project Problem below and solve it with the use of POM-QM
for Windows. (Refer to Appendix IV in the Heizer and Render (2011)
textbook.)
Individual Project Problem
The product structure tree for the finished product A is
given below.
.png”>
The marketing department is estimating product Aâ€™s demand to
be 60 units for week 4 and 50 units for week 6. There is a scheduled receipt of
75 units for component D at the beginning of week 2. Various other MRP related
information for the finished products and the components are provided below.

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A

C

D

E

On
hand

12

170

9

5

time

2

2

1

1

Lot
size

LFL

150+

multiples
of 40

multiples
of 22

Provide the MRP tables for all the finished products and the
components for the next six weeks.