Assignment #3 Operations Management

BMGT 203

PLACE YOUR ANSWERS IN THE AREA INDICATED

1. Drews blinds would like to reduce its inventory cost by determining the
optimal number of blind blanks to obtain by order. The annual demand is
7000 units. The set up and order cost is $10 per order and holding cost per
blind blank is $0.75. What is the optimal number of units to order and the
optimal number of orders to make in a year?

Answer:

Optimal units to order? 432.04

Optimal number of orders? 186645.46

Show Calculations Here (mandatory):

Q*=√2DS/H
=√2 (700) (10)/0.75
=√140000/0.75
= 432.04

N = Demand/order quantity
= 7000/432.04
= 186,645.46

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 Assignment #3 Operations Management
BMGT 203

PLACE YOUR ANSWERS IN THE AREA INDICATED

2. MRP provides several benefits. What are 4 benefits of MRP for an

automotive parts manufacture? For each explain why this is a benefit

Answer:

MRP Benefit Why is this a benefit for an automotive parts manufacturer?

1. Tracking of materials The ability to keep track of material requirements.

2. Inventories level Low levels of in process inventories.

3. Master schedule The ability to evaluate capacity requirements generated by a given

master schedule.

4. determination The ability to easily determine inventory usage by back flushing.

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 Assignment #3 Operations Management
BMGT 203

PLACE YOUR ANSWERS IN THE AREA INDICATED

3. Long range and short range forecasting provides several benefits. If you
owned a restaurant what do you think would be most appropriate to forecast
for short-term (ie each week) ? For long-term (ie for the year) ?
Would this differ if you had a single restaurant or a chain of 400
restaurants (ie like Swiss Chalet)? Explain why

Answer:

Your Answer
Short Term Short term forecasting is good for restaurant. Short-range (to mid-extend)
figures are generally for day by day, week by week, or month to month
deals interest for up to around two years into the future, depending upon
the organization and the sort of industry. They are primarily used to
decide creation and transmission plans and to set up stock levels.

Long Term It is not good to choose long term forecasting because a long-go
assumption is typically utilized for vital arranging - to set up long haul
purposes, arrange new items for evolving markets, enter new markets,
grow new offices, create innovation, outline the store network, and
actualize vital projects

Difference if owned 400 It is good to choose long term forecasting if I had 400 restaurant because
and why? a long-go conjecture is typically used for vital arranging - to set up long
haul objectives, arrange new items for evolving markets, enter new
markets, grow new offices, create innovation, outline the store network,
and realize vital projects

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 Assignment #3 Operations Management
BMGT 203

PLACE YOUR ANSWERS IN THE AREA INDICATED

4. Compare and contrast JIT and Kanban systems? What are these and how
do they differ? If you have one does this mean you cannot have another?
Explain.

Answer:

Compare and Contract JIT JIT called in the nick of time generation or the Toyota
and Kanban systems Production System (TPS), is a technique pointed basically at
diminishing stream times inside creation framework and also
reaction times from earners and to clients. Taking after its
beginning and advancement at the British Motor Corporation
(Australia) plant in Sydney in the mid-1950s (however the
term JIT was not utilized around then), it was likewise
embraced in Japan, to a great extent in the 1970s and
especially at Toyota.

Kanban is a pictorial flag that is utilized to start an activity.

The word Kanban is Japanese and generally construed
signifies "card you can see."
Toyota presented and advanced the utilization of Kanban in a
hand-off framework to institutionalize the stream of parts in
their in the nick of time (JIT) generation lines in the 1950s.

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