A Manufacturing Company Is Trying to Determine the Best Lot-Sizing

question 21

Essay

A manufacturing company is trying to determine the best lot-sizing approach to take when developing an MRP schedule: lot-for-lot (LFL), fixed order quantity (FOQ) using the EOQ, or period order quantity (POQ).The ordering cost is $504 per order, the inventory carrying cost is $1 per week per unit, and the annual demand for the product is 15,000 units.They are using a work schedule for a 50-week work year.They are disregarding the effects of initial inventory and safety stock at the present time.The estimated net requirements for their product for the next six weeks are:
a.Using LFL, what is the size of the production lot in week 3?
b.Using LFL, what is the total cost for this method?
c.What is the EOQ needed?
d.What is the beginning inventory in week 4 using FOQ method?
e.What is the total cost for using the FOQ approach?
f.What is the POQ size for production lots?
g.What is the ending inventory for week 5 using POQ method?
h.What is the total cost for using the POQ approach?

Grasp the concept of customer value propositions and their categories.

Understand the role of balanced scorecard performance measures in organizational improvement.

Recognize the classifications of quality costs within a quality cost report.

Grasp the importance of aligning improvement efforts with performance measures on the balanced scorecard.

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Definitions:

Chemoreceptors

Sensory receptors that respond to chemical stimuli, found in various locations in the body, crucial for detecting changes in chemical composition.

Thermoreceptors

Specialized nerve cells that are able to detect changes in temperature, sending signals to the brain about the body’s external and internal temperature.

Mechanoreceptors

Sensory receptors that respond to mechanical pressure or distortion, involved in sensations such as touch, pressure, and sound.

Nociceptors

Specialized sensory neurons that respond to damaging or potentially damaging stimuli by sending signals to the spinal cord and brain.