5. What is the rationale for (a) a phantom bill of material, (b) a planning bill of material,(c) a pseudo bill of material?
a) A phantom bill of material is usually prepared for sub-assembly components that exist onlytemporarily and go directly into another assembly. They used to receive special treatment, lead timesare zero and handled as an integral part of their presentation. They are never inventoried. b) A planning bill of material is prepared for items with fractional options. For example, it can specify 0.3of a part or 30% of the unit’s produced containing that part and 70% that is not included.c) A pseudo bill of material is prepared to simplify the scheduling and control and makes it easier toforecast the use of different materials. It is similar to a planning bill of material or kit number
6. Assume that your company is using a DRP system and that your men ignored carrying cost in the allocation of stock. Will your lot sizes be affected? Explain your position.
The lot sizes will be affected. It will place more orders that increase inventory and carrying cost. Totalinventory should be minimized. Additionally, lot sizes in a DRP system should be kept as small aspossible within the constraints of ordering and transportation costs.
7. Explain the trade-off between operator-performed maintenance versus supplier- performed maintenance.
Many of the activities associated with effective preventive maintenance require particular knowledge andtraining, meaning that maintenance is a specialized service to production. In the early period of equipment requisition or warranty, it is best for the company to avail of supplier-performed maintenanceand acquire transfer of knowledge and technology on maintenance procedures.Operator-performed maintenance are conducted for office machines and equipment performed byemployees of a certain company. This will be a better option for the company if they have hightechnology and high-powered, top-of the-line machines in operation. It also occupies a large building andrequires a lot of maintenance workPreventive maintenance cost less if done by the operator. A maintenance department conducts supplier-performed maintenance, manufacturer field services, and the depot services (return equipment).Supplier-performed maintenance should be resorted by a company who does not operate complicatedmachines or maintain only a small amount of equipment, since they will have to incur additionalmanpower costs for maintenance purposes.
8. Explain the assumptions behind the center-of-gravity method. How can the model be used in a service facility location? What is the rule on center of gravity in transportation/distribution?
The center-of-gravity method is a technique for locating single facilities that considers the existingfacilities, the distances between them, and the volumes of goods to be transported. It assumes thatinbound and outbound transportation costs are equal, and it does not include special shipping costs for less than full loads.The model is often used to locate intermediate or distribution warehouses. It begins by placing theexisting locations on a coordinate grid system. The choice of coordinate system is entirely arbitrary. Thisis to establish relative distances between locations. The center-of-gravity is calculated from the X and Ycoordinates which result in the minimal transportation costs.