2. By: Prof. Y. Peter Chiu Material Management ~ Mid-Term #1 Solution ~ 4 / 2010

3. Not satisfied ！ No feasible solutions by regular shift in-house production plan. However, one can look into “Overtime” or “Outsourcing” solutions. #1 r = ( 55, 62, 52, 42, 88, 65 ) C= ( 60, 60, 50, 50, 77, 70 )

4. #2 comp. H 23456 7891011121314 End item 30706510090 B -G.R. 90210195300270 B- T.P.NR. 90210195300270 E -G.R. 180420390600540 E- T.P.NR. 180420390600540 G- G.R. 180420390600540 G- T.P.NR. 180420390600540 I- G.R. 180420390600540 I- T.P.NR. 180420390600540 I.- P.O.R 180420390600540

5. (a) Yes Week Req. Capacities (C-R) lot-for-lot Initial Solution (C-R’) 12345671234567 350180150320230210170 500500100100450100100 150320(50)(220)220(110)(70) 350450100100410100100 150 50 0 0 40 0 0 r’  One Solution 500500 0 0410100100 Alternative #1: K=$105 ; h=$0.4 (A) Week 4th lot : by Week 2 2*(0.4)*50=$40 by Week 1 3*(0.4)*50=$60 Saves $5 Saves $25(B) Week 3rd lot :by Week 1 2*(0.4)*100=$80 Total savings $30 & # 3 (b) Costs for Initial Solution : ($105)*7+($0.4)[270+220+180+70]=$1031 Costs for this Solution : ($105)*5+($0.4)[150+470+320+180+70]=$1001

6. Alternative #2: (A) Week 3rd lot : (B) Week 4th lot : by Week 2 $(0.4)(50)=$20 by Week 1 $(0.4)(2)(50)=$40 by Week 1 3($0.4)(100)=$120 the best  Total Savings $45  X cost Initial Solution : ($105)*7+($0.4)[270+220+180+70]=$1031 Costs for optimal solution : ($105)*6+($0.4)[50+370+220+180+70]=$986 Week Req. Capacities 12345671234567 350180150320230210170 500500100100450100100 (C-R’) 350450100100410100100 150 50 0 0 40 0 0 Optimal Solution 400500 0100410100100 50370 220 0180 70 0Inventories  # 3 (b) r’ 

7. # 4 (a)

8. (b) Starting in Week 1 Order Horizon Total Holding cost 12341234 0 110 (0.5*220) 290 [0.5*220+2*(0.5)*180] 440 [290+3*(0.5)*100] K=320 ∵ K is closer to period 3 ∴ # 4

9. (b) Starting in Week 4 Order Horizon Total Holding cost 123123 0 100 (0.5*200) 300 [0.5*200+2*(0.5)*200] K=320 ∵ K is closer to period 3 ∴ # 4

10. (c) Total Costs = Setup costs + holding costs = 2*($320) + $0.5*(1080) = $ 1180 (  Silver-Meal) = 2*($320) + $0.5*(1180) = $ 1230 (  P.P.B.)  Silver/Meal has the lower costs. (4.07% lower) # 4

11. Virginia’s Sweaters Inc. has authorized the following MPS for his exclusive line of cashmere sweaters. She wants to use the MPS record for promising future orders. Current order promises are included. The MPS order quantity is 65 units. Beginning inventory is 24. Complete the Following Projected available & ATP records. Period 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 50 30 40 30 40 40 40 60 60 50 30 30 Customer orders 30 24 40 30 50 16 30 80 16 20 24 0 Projected available 24 104 74 34 4 84 44 4 54 -6 74 44 14 Available-to-promise 30 34 34 86 MPS 130 130 130 130 Projected available is calculated as Projected available = Beginning inventory + MPS shipment – the greater of the period’s forecast or the customer orders promised for delivery. ATP action bucket = (beginning inventory ) + (MPS shipment)- (Customer orders before next replenishment) ATP future = (MPS shipment) - (Customer orders between current MPS shipment and next scheduled replenishment) # 5

12. # 6 Virgina. the owner of J.C. Sweaters has received several additional orders to consider. Using the ATP record calculated in Solved Problem #5, calculate which of the new order Jeannette should accept. The new orders are: (1) 32 units for delivery in period 4. (2) 30 units for delivery in Period 6. (3) 36 units for delivery in Period 7. (4) 64 units for delivery in Period 9.

13. # 6 CAN NOT ACCEPT (1)32 units for delivery in period 4. CAN NOT ACCEPT Period 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 50 30 40 30 40 40 40 60 60 50 30 30 Customer orders 30 24 40 30 50 16 30 80 16 20 24 0 Projected available 24 104 74 34 4 84 44 4 54 -6 74 44 14 Available-to-promise 30 34 34 86 MPS 130 130 130 130

14. # 6 ACCEPT the Order (2) 30 units for delivery in Period 6. ACCEPT the Order Period 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 50 30 40 30 40 40 40 60 60 50 30 30 Customer orders 30 24 40 30 50 16 30 80 16 20 24 0 Projected available 24 104 74 34 4 84 44 4 54 -6 74 44 14 Available-to-promise 30 34 34 86 MPS 130 130 130 130 Period 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 50 30 40 30 40 40 40 60 60 50 30 30 Customer orders 30 24 40 30 50 46 30 80 16 20 24 0 Projected available 24 104 74 34 4 84 38 -2 48 -12 68 38 8 Available-to-promise 30 4 34 86 MPS 130 130 130 130

15. # 6 CAN NOT ACCEPT (3) 36 units for delivery in Period 7. CAN NOT ACCEPT Period 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 50 30 40 30 40 40 40 60 60 50 30 30 Customer orders 30 24 40 30 50 46 30 80 16 20 24 0 Projected available 24 104 74 34 4 84 38 -2 48 -12 68 38 8 Available-to-promise 30 4 34 86 MPS 130 130 130 130

16. # 6 ACCEPT the Order (4) 64 units for delivery in Period 9. ACCEPT the Order Period 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 50 30 40 30 40 40 40 60 60 50 30 30 Customer orders 30 24 40 30 50 46 30 80 16 20 24 0 Projected available 24 104 74 34 4 84 38 -2 48 -12 68 38 8 Available-to-promise 30 4 34 86 MPS 130 130 130 130 Period 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 50 30 40 30 40 40 40 60 60 50 30 30 Customer orders 56 24 40 30 54 46 30 80 50 20 24 0 Projected available 24 98 68 28 -2 74 28 -12 38 -22 58 28 -2 Available-to-promise 4 0 0 86 MPS 130 130 130 130

17. The End The End