Total 100 points Instructions: • You can scan or take a picture of your diagram and attach to your submission. • Please type your answers in Word/Excel or text option of the Blackboard. (You can attach your files when you submit your homework.) Questions: 1. (50 points)-MRP Assume that Product Z is made of 2 units of A and 4 units of B. A is made of 3 units of C and 4 D. D is made of 2 units of E. Lead times for purchase or fabrication of each unit to final assembly are Z takes 2 weeks; A, B, C, and D take 1 week each; and E takes 3 weeks. 50 units are required in Period 10. (Assume that there is currently no inventory on hand of any these items.) (a) Show the bill of materials (product structure tree). (b) Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates. 2. (50 points)-Inventory Management (Reorder Point Calculation) A distributor of large appliances needs to determine the order quantities and reorder points for the various products it carries. The following data refer to a specific refrigerator in its product line: Cost to place an order $100 Holding cost 20 percent of product cost per year $500 each Cost of refrigerator Annual demand 500 refrigerators Standard deviation during lead time 10 refrigerators Lead time 7 days Consider an even daily demand and a 365-day year. 1 a) What is the economic order quantity? b) If the distributor wants a 97 percent service probability, what reorder point, R, should be used? (z=1.90 for 97%.)
