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

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 )

#2 comp. H End item B -G.R B- T.P.NR E -G.R E- T.P.NR G- G.R G- T.P.NR I- G.R I- T.P.NR I.- P.O.R

(a) Yes Week Req. Capacities (C-R) lot-for-lot Initial Solution (C-R’) (50)(220)220(110)(70) r’  One Solution 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)[ ]=$1031 Costs for this Solution : ($105)*5+($0.4)[ ]=$1001

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)[ ]=$1031 Costs for optimal solution : ($105)*6+($0.4)[ ]=$986 Week Req. Capacities (C-R’) Optimal Solution Inventories  # 3 (b) r’ 

# 4 (a)

(b) Starting in Week 1 Order Horizon Total Holding cost (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

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

(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

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 Forecast Customer orders Projected available Available-to-promise MPS 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

# 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.

# 6 CAN NOT ACCEPT (1)32 units for delivery in period 4. CAN NOT ACCEPT Period Forecast Customer orders Projected available Available-to-promise MPS

# 6 ACCEPT the Order (2) 30 units for delivery in Period 6. ACCEPT the Order Period Forecast Customer orders Projected available Available-to-promise MPS Period Forecast Customer orders Projected available Available-to-promise MPS

# 6 CAN NOT ACCEPT (3) 36 units for delivery in Period 7. CAN NOT ACCEPT Period Forecast Customer orders Projected available Available-to-promise MPS

# 6 ACCEPT the Order (4) 64 units for delivery in Period 9. ACCEPT the Order Period Forecast Customer orders Projected available Available-to-promise MPS Period Forecast Customer orders Projected available Available-to-promise MPS

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