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Principles of Supply Chain Management LGMT 444

Problem Set 2

1. Use a (a) level production strategy and (b) chase production strategy to compute the monthly production, ending inventory/(backlog) and workforce levels for the following production plan. Assume that a worker can produce 50 units per month, the beginning inventory in April is 500 units, and the firm desires to have 300 units of inventory at the end of September.

 

Month	April	May	June	July	August	September
Demand	2400	3100	5000	6300	5700	2200
Production
Ending Inventory
Workforce

 

2. Garden Inc. replenishes its two distribution centers in Jacksonville and Miami from its Atlanta central supply warehouse. The distribution schedule for one of its products for the next six weeks is shown below. Use proper distribution requirements planning logic to complete the replenishment schedules of the two distribution centers and the central supply warehouse.

 

Jacksonville Distribution Center		1	2	3	4	5	6
Gross Requirements		0	20	10	0	15	10
Scheduled Receipts			11
Projected On-hand Inventory	20
Planned Order Releases

Q = LFL; LT = 2; SS = 2

 

Miami Distribution Center		1	2	3	4	5	6
Gross Requirements		40	0	0	55	0	30
Scheduled Receipts		30
Projected On-hand Inventory	15
Planned Order Releases

Q = LFL; LT = 1; SS = 5

 

Atlanta Central Warehouse		1	2	3	4	5	6
Gross Requirements
Scheduled Receipts
Projected On-hand Inventory	50
Planned Order Releases

Q = LFL; LT = 1; SS = 0

 

 

 

3. Given the following information, complete the planned order releases and projected on-hand balances for component part A.

Part A		Week 1	Week 2	Week 3	Week 4	Week 5
Gross Requirements		90	0	85	0	100
Scheduled Receipts		60
Projected Balance	130
Planned Order Releases

Q = 50, LT = 3 weeks, Safety Stock = 10

 

Principles of Supply Chain Management LGMT 444

Problem Set 2

 

1. Use a (a) level production strategy and (b) chase production strategy to compute the monthly production, ending inventory/(backlog) and workforce levels for the following production plan. Assume that a worker can produce 50 units per month, the beginning inventory in April is 500 units, and the firm desires to have 300 units of inventory at the end of September.

 

Month	April	May	June	July	August	September
Demand	2400	3100	5000	6300	5700	2200
Production
Ending Inventory
Workforce

 

2. Garden Inc. replenishes its two distribution centers in Jacksonville and Miami from its Atlanta central supply warehouse. The distribution schedule for one of its products for the next six weeks is shown below. Use proper distribution requirements planning logic to complete the replenishment schedules of the two distribution centers and the central supply warehouse.

 

Jacksonville Distribution Center		1	2	3	4	5	6
Gross Requirements		0	20	10	0	15	10
Scheduled Receipts			11
Projected On-hand Inventory	20
Planned Order Releases

Q = LFL; LT = 2; SS = 2

 

Miami Distribution Center		1	2	3	4	5	6
Gross Requirements		40	0	0	55	0	30
Scheduled Receipts		30
Projected On-hand Inventory	15
Planned Order Releases

Q = LFL; LT = 1; SS = 5

 

Atlanta Central Warehouse		1	2	3	4	5	6
Gross Requirements
Scheduled Receipts
Projected On-hand Inventory	50
Planned Order Releases

Q = LFL; LT = 1; SS = 0

 

 

 

3. Given the following information, complete the planned order releases and projected on-hand balances for component part A.

Part A		Week 1	Week 2	Week 3	Week 4	Week 5
Gross Requirements		90	0	85	0	100
Scheduled Receipts		60
Projected Balance	130
Planned Order Releases

Q = 50, LT = 3 weeks, Safety Stock = 10