Assignment
I. A large food distributor uses 8000 packing crates each month to pack and ship its goods. The crates are purchased at a cost of $10 each. The annual holding cost for a crate is estimated at 35% of the purchase price. It is estimated that the cost to place an order for the crates is $25. What is the EOQ for this item?
1) What is the EOQ for these crates? (Round your answer to the nearest whole number)
2) If the company used the EOQ, what would be there total cost for ordering and holding these crates? (Round your final answer to the nearest whole number)
3) If the current purchasing manager orders crates once a month, how much money would they save if they switched to the EOQ method of ordering?
II. The Food distributor from problme 9 has also decided to use the ROP system for determining when to place an order. The purchasing manager has determined that the monthly demand for crates of 8000 has a standard deviation of 200. The current supplier of the crates has a .25 month lead time. If the manager wants a 95% customer service level on the crates, what should the ROP be for this item?
1. What would the reorder point be for the paper?
2. If the manager was considering using a 99% customer service level how much more safety stock would it need compared to the 95% customer service level?
III.
|
Task
|
Optimistic
|
Most Likely
|
Pessimistic
|
|
A
|
10
|
12
|
20
|
|
B
|
14
|
16
|
24
|
|
C
|
7
|
14
|
21
|
|
D
|
15
|
19
|
29
|
|
E
|
12
|
21
|
24
|
|
F
|
5
|
17
|
23
|
|
G
|
10
|
13
|
16
|
|
H
|
7
|
10
|
19
|
|
I
|
10
|
16
|
28
|
|
J
|
10
|
20
|
24
|
|
K
|
10
|
15
|
26
|
|
L
|
15
|
21
|
27
|
|
M
|
2
|
4
|
12
|
1. What is the critical path for this project & its expected duration?
2. What is the standard deviation of the critical path?
3. What is the slack on each activity?
4. What is the probability of completing the critical path in 75 weeks?
5. What completion time would give you a 99% confidence of completing the critical path on-time?