MGO 302 Lecture Notes - Lecture 5: Master Production Schedule, Carrying Cost, Lead Time
20 Jun 2018
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Department
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Harry Corporation has forecasted its production requirements for the next four months:
Month Productive
Days Available
Customer
Demand (units)
June 21 25,000
July 22 16,000
August 11 18,000
September 21 14,000
Currently, there are 100 employees with normal productivity of 12 units daily per
employee. Harry Corporation can put its output into inventory, but Harry Corporation
currently has no inventory on hand. Harry Corporation plans to utilize all productive
days available over these next four months- that is, all employees will be working at
their normal productive rate for all productive days available. Following Harry
Corporation’s production plan, how many units will be produced in August?
26,400 X
18,000 X
5,800
25,200 X
13,200
Harry Corporation has forecasted its production requirements for the next four months:
Month Productive
Days Available
Customer
Demand (units)
June 21 25,000
July 22 16,000
August 11 18,000
September 21 14,000
Currently, there are 100 employees with normal productivity of 12 units daily per employee.
Harry Corporation can put its output into inventory, but Harry Corporation currently has no
inventory on hand. Harry Corporation plans to utilize all productive days available over these
next four months- that is, all employees will be working at their normal productive rate for all
productive days available. Following Harry Corporation’s production plan, what would be the
average inventory during the month of July?
5,400
10,600
11,400
100
0
left in inventory at the end of September?
17,000
5,800 X
10,600 X
200
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0
Question 2
1.
In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will:
remain the same
double
increase, but not double X
triple
decrease by a factor of two
Assuming perfectly constant demand, if lead time increases from five to 10 days, the
reorder point will:
triple
increase by five times the original amount
remain the same
double
decrease by exactly half
Question 3
1.
When using a "level capacity strategy" or “level production strategy” in aggregate
planning, variations in demand are met by using which of the following options?
I. varying output during regular time without changing workforce size (for
example, using overtime)
II. varying output during regular time by changing workforce size
III. varying inventory levels
II only X
II and III X
I and II X
III only
I only
1 points
Question 4
1.
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Document Summary
Harry corporation has forecasted its production requirements for the next four months: Currently, there are 100 employees with normal productivity of 12 units daily per employee. Harry corporation can put its output into inventory, but harry corporation currently has no inventory on hand. Harry corporation plans to utilize all productive days available over these next four months- that is, all employees will be working at their normal productive rate for all productive days available. In the basic eoq model, if lead time increases from five to 10 days, the eoq will: remain the same double increase, but not double x triple decrease by a factor of two. Assuming perfectly constant demand, if lead time increases from five to 10 days, the reorder point will: triple increase by five times the original amount remain the same double decrease by exactly half.
