EGR275 (F) / Page 1 of 6
INTI COLLEGE
MALAYSIA
DIPLOMA IN ENGINEERING PROGRAMME
EGR 275 : INVENTORY & MATERIAL MANAGEMENT
FINAL EXAMINATION : AUGUST 2002 SESSION
This paper consists of SEVEN (7) questions. Answer FIVE (5) questions in the answer
booklet provided. All questions carry equal marks.
1.
(a)
(b)
2.
(a)
The MPC system should evolve to meet changing requirements in the
market.
(i)
Identify the several MPC approaches available and discuss the
appropriate products and processes that fit in each approaches.
(5 marks)
(ii)
Describe the various needs of a company that could affect these
changes in approach.
(5 marks)
MPC encompasses three distinct phases. Identify the activities performed
in each of these phases below, and explain their roles and objectives.
(i)
Phase 1: creating overall manufacturing plan for the manufacturing
part of the company game plan.
(5 marks)
(ii)
Phase 2: performing the detailed planning of material and capacity
needs to support the overall plans.
(3 marks)
(iii)
Executing these plans on the shop-floor and in purchasing
(2 marks)
The following jobs are waiting to be processed at Rick Carlson’s machine
center. Carlson’s machine center has a relatively long backlog and sets
fresh schedules every two weeks, which do not disturb earlier schedules.
Below are the jobs received during the previous two weeks. They are
ready to be scheduled today, which is day 241. Job names refer to names
of clients and contract numbers.
Job Date Job Received
CX-01
225
BR-02
228
DE-06
230
SY-11
231
RG-05
235
Production Days Needed
25
15
35
30
40
Date Job Due
270
300
320
310
360
EGR275 (F) / Page 2 of 6
Dispatching
Rule
Job sequence
Flow time
Average number
of jobs
Average lateness
EDD
SPT
CR
FCFS
(i)
Complete the
calculations.)
following
table.
(Show
your
supporting
(3 marks)
(ii)
Which dispatching rule has the best score for flow time, average
number of jobs and lateness?
(3 marks)
(b)
Two different approaches are used to load work centers, infinite and finite
loading. Explain the procedures for both approaches.
(6 marks)
(c)
The following set of seven jobs is to be processed through two work
centers at George Heinrich’s Printing Company. The sequence is printing
first, then binding. Processing time at each of the work centers is shown
below
.
(i)
(ii)
(iii)
What is the optimal sequence for these jobs to be scheduled?
(3 marks)
Chart these jobs through the two work centers.
(3 marks)
What is the total length of time of this optimal solution?
(2 marks)
Job Printing (hours)
Binding (hours)
T
U
V
W
X
Y
Z
15
7
4
7
10
4
7
3
9
10
6
9
5
8
EGR275 (F) / Page 3 of 6
3.
(a)
A company was updating the MPS record for one of its products.
(i)
Complete the following time phased record, ensuring a positive
ending inventory balance.
Forecast
Orders
Available
ATP
MPS
1
20
5
2
20
3
3
20
2
WEEK
4
5
30
30
6
30
7
30
8
30
On hand = 20
MPS lot size = 50
(5 marks)
(ii)
The following events occurred during week 1, update the record
after rolling through time.
Actual demand during week 1 was 25 units
Marketing forecasted that 40 units would be needed for week 9
An order for 10 in week 2 was accepted
An order for 20 in week 4 was accepted
An order for 6 in week 3 was accepted
The MPS for week 1 was produced as planned
(5 marks)
(b)
Explain the reasons for maintaining a projected inventory balance in
constructing the MPS.
(4 marks)
(c)
Explain the need to compute the following techniques:
(i)
Rolling through time
(2 marks)
(ii)
Order promising
(2 marks)
(iii)
Consuming the forecast
(2 marks)
EGR275 (F) / Page 4 of 6
4.
(a)
Bell Computer Corp. needs an aggregate plan for July through December
for its DVD production. The company has developed the following data:
Costs
Holding cost
Subcontracting
Regular-time labor
Overtime labor
Hiring cost
Layoff cost
Stockout
$8/DVD/month
$80/DVD
$12/hour
$18/hour for hours above
8 hours/worker/day
$40/DVD
$80/DVD
cost none
Other Data
Current workforce (June)
Labor hours/DVD
Workdays/month
Beginning inventory
Ending inventory
8 people
4 hours
20 days
250 DVDs
0 DVDs
Demand Forecast
July
400
Aug.
500
Sept.
550
Oct.
700
Nov.
800
Dec.
700
What will each of the two following strategies cost?
(b)
(i)
Plan A: Vary the work force so that production meets the
forecasted demand. Bell had eight employees on staff in June.
(6 marks)
(ii)
Plan B: Vary overtime only and use a constant workforce of ten.
(6 marks)
(iii)
Which plan is best and why?
(2 marks)
Define and explain the philosophy employed for the below strategies
employed in production planning:
(i)
Chase strategy
(2 marks)
(ii)
Level scheduling strategy
(2 marks)
(iii)
Mixed strategy
(2 marks)
EGR275 (F) / Page 5 of 6
5.
(a)
Briefly describe each of the costs associated with inventory.
(3 marks)
(b)
Describe briefly the A-B-C approach to inventory control.
(3 marks)
(c)
Explain the major assumptions of the basic EOQ model.
(3 marks)
(d)
Joe Henry’s machine shop uses 2500 brackets during the course of a year.
These brackets are purchased from a supplier 90 miles away. The
following information is known about the brackets.
Annual demand:
Holding cost per bracket per year:
Order cost per order:
Lead-time:
Working days per year:
2500
$1.50
$18.75
2 days
250
(i)
Given the above information, what would be the economic order
quantity (EOQ)
(2 marks)
(ii)
Given the EOQ, what would be the average inventory? What
would be the annual inventory holding cost?
(2 marks)
(iii)
Given the EOQ, how many orders would be made each year? What
would be the annual order cost?
(2 marks)
(iv)
Given the EOQ, what is the total annual inventory cost?
(2 marks)
(v)
What is the time between orders?
(1 mark)
(vi)
What is the reorder point (ROP)?
(2 marks)
6.
(a)
Discuss the meaning of MRP terms such as planned order release and
scheduled order receipts.
(4 marks)
(b)
State the types of data that would be carried in the bill of materials file and
the inventory record file.
(6 marks)
EGR275 (F) / Page 6 of 6
7.
(c)
Each unit of A is composed of one unit of B, two units of C, and one unit
of D. C is composed of two units of D and three units of E. Items A, C, D
and E have on hand inventories of 20, 10, 20 and 10 units, respectively.
Item B has a schedule receipt of 10 units in period 1, and C has a
scheduled receipt of 50 units in period 1. Lot for lot is used for Items A
and B. Item C requires a minimum lot size of 50 units. D and E are
required to be purchased in multiples of 100 and 50, respectively. Lead
times are one period for items A, B, and C, and two periods for items D
and E. The gross requirement for A are 30 in period 2, 30 in period 5, and
40 in period 8. Find the planned order releases for all items.
(10 marks)
(a)
Explain the benefits of small lot size in JIT.
(b)
Explain the kanban aspect of a JIT system and contrast the push and pull
methods of moving goods and materials through production systems.
(8 marks)
(c)
What are some of the obstacles that must be overcome in converting from
a traditional system to JIT?
(6 marks)
-THE ENDegr275aug`02\final\har…
(6 marks)