MGMT 524 MODULE 4 PROBLEMS DOWNLOAD
4-1 Ross White’s machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $19 each, and the lead time is 4 days. The holding cost per bracket per year is 10% of the unit cost and the ordering cost per order is $25. There are 250 working days per year. 4-2 Douglas Boats is a supplier of boating equipment for the states of Oregon and Washington. It sells 5,000 White Marine WM-4 diesel engines every year. These engines are shipped to Douglas in a shipping container of 100 cubic feet, and Douglas Boats keeps the warehouse full of these WM-4 motors. The warehouse can hold 5,000 cubic feet of boating supplies. Douglas estimates that the ordering cost is $50 per order, and the carrying cost is estimated to be $50 per motor per year. Douglas Boats is considering the possibility of expanding the warehouse for the WM-4 motors. 4-3 Ralph Janaro simply does not have time to analyze all the items in his company’s inventory. As a young manager, he has more important things to do. The following is a table of six items in inventory along with the unit cost and the demand in units. 4-4 The marginal loss on Washington Reds, a brand of apples from the state of Washington, is $40 per case. The marginal profit is $15 per case. During the past year, the mean sales of Washington Reds in cases was 41,000 cases, and the standard deviation was 4,480. How many cases of Washington Reds should be brought to market? Assume that sales follow a normal distribution 4-5 Paula Shoemaker produces a weekly stock market report for an exclusive readership. She normally sells 3,000 reports per week, and 70% of the time her sales range from 2,850 to 3,150. The report costs Paula $25 to produce, but Paula is able to sell reports for $350 each. Of course, any reports not sold by the end of the week have no value. How many reports should Paula produce each week? 4-6 The Webster Manufacturing Company produces a popular type of serving cart. This product, the SL72, is made from the following parts: 1 unit
of Part A, 1 unit of Part B, and 1 unit of Subassembly C. Each subassembly C is made up of 2 units of Part D, 4 units of Part E, and 3 units of Part F. Develop a material structure tree for this. The lead time for each of the parts in the SL72 is one week, except for Part B and Part E, which have a lead time of two weeks