dat, inc. produces digital audio tapes to be used in the consumer audio division. DAT lacks sufficient personnel in its inventory supply section to closely control each item stocked, so it has asked you to determine an ABC classification. Here is a sample from the inventory records:

ITEM / MONTHLY DEMAND / PRICE PER UNIT / ITEM / AVERAGE MONTHLY DEMAND / PRICE PER UNIT
1 / 700 / $6.00 / 6 / 100 / 10.00
2 / 200 / $4.00 / 7 / 3,000 / 2.00
3 / 2000 / 12 / 8 / 2,500 / 1.00
4 / 1100 / 20. / 9 / 500 / 10
5 / 4000 / 21 / 10 / 1000 / 2

A)  Develop an ABC classification for these 10 items.

2. Product A is an end item and is made from 2 units of B and four of C. B is made of three units of D and two of E. C is made of two units of F and two of E.

A has a lead time of one week. B, C, and E have lead times of two weeks and D and F have lead times of three weeks.

A.  Show the bull of materials (product structure tree.)

B.  If 100 units of A are required in Week 10, develop the MRP planning schedule, specifying when items are to be ordered and received. There are currently no units of inventory on hand.

12.5. DAT, Inc., needs to develop an aggregate plan for its product line. Relevant data are :

Product Time / 1 hour per unit / Beginning inventory / 500 Units
Avg. labor cost / $10 hr. / Safety Stock / One-half month
Work week / 5 days, 8 hours each day / Shortage cost / $20 per unit per month
Days per month / Assume 20 work days per month / Carrying cost / $5 per unit per month

Management prefers to keep a constant workforce and production leve, absorbing variations in demand through inventory excesses and shortages. Demand not met is carried over to the following month.

Develop an aggragate plan that will meet the demand and other conditions of the problem. Do not try to find the optimum; just find a good solution and state the procedure you might use to test for a better solution. Make any necessary assumptions.

11.2 – Here are the actual tabulated demands for an item for a nine month period (January - Sept.) Your supervisor wants to test two forecasting methods to see which method was better over this period.

Month: / Actual:
January / 110
Feb / 130
March / 150
April / 170
May / 160
June / 180
July / 140
Aug. / 130
Sept / 140

A.  Forecast April – Spet. Using a 3 month moving avg.

B.  Use simple exponential smoothing with an alpha of .3 to estimate April – Sept.

C.  Use MAD to decide which metrod produced the better forecast over the 6-month period.

10.3 A bottling plant fills 2400 bottles every two hours. The lead time is 40 mins. And a container accommodates 120 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed?