Lgmt 444 wk 3 Business & Finance homework help

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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

2

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