Topic: Operation management (WINQSB)

Problem description 1 (40 pts)
The demand for deluxe bikes is estimated as 3000 units per year. The setup cost for placing
an order to replenish inventory is £20. The order is delivered by the supplier how charges to
the store £5/bike for the cost of transportation from the Manufacturer to the bike store. This
transportation cost increases the cost of deluxe bikes to £100/bike. In addition, the bikes store
charges an annual holding cost of £500/bike.
Using WINQSB, give the right answer to the following questions:
1.  Describe  the  main  data  (or  inputs)  you  have  considered  to  solve  the  problem  with
WinQSB. (5 pts).
2.  How often the store should order for deluxe bikes?. (5 pts).
3.  What the size of each order should be for minimising the total cost?. (10 pts).
4.  Give your analysis from the results by explaining the main reasons to get them. You
may support this using tables and graphs. (20 pts).
Problem description 2 (60 pts)
Regarding to the MRP exercise from the lab session (16/10/2014):
1.  Solve the additional MRP problems addressed in the end of the lab session for:
a)  Extra demand Pattern plus Leadtime 1. (5 pts).
b)  Extra demand Pattern plus Leadtime 2. (5 pts).
c)  Explain the results from a) and b). Are they different?, why?. (20 pts).
2.  Identify the production planning information for the following cases:
a)  Extra demand Pattern plus Leadtime 1. (5 pts).
b)  Extra demand Pattern plus Leadtime 2. (5 pts).
c)  Explain the results from a) and b). Are they different?, why?. (20 pts).

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