Supply Chain Management 2019 Quiz-I

Marks: 15 Time: 20 Minutes

0 Just Encircle the alphabetic representation (e.g., ©) of the right answer (only
one) wherever
applicable. Do not rewrite the selected answer.
0 Answer to other questions must be within the borders.

1_ Montegut Manufacturing produces a product iii-house, for which the annual demand
is 05
‘0,000 units. Production averages 100 units per day, while demand is 40 units per
day.
Holding costs are $2.00 per unit per year, and setup cost is {$200.00. (a) If the
firm
Wishes to produce this product in economic batcheS, what size batch should be used?
(b)
What is the maximum inventory level? (c) How many order cycles are there per year?
(d) What are the total annual holding and setup costs? V ___—_

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2 Parasol Systems sells motherboards for personal computers. For quantities up

through 25, 05
‘ the firm charges $350 per board; for quantities between 26 and 50, it charges $315
for
each board purchased beyond 25; and it charges $285 each for the additional
quantities
over 50. A large communications firm expects to require these motherboards for the
next
10 years at a rate of at least I40 per year. Determine the total cost (C(Q) for ‘Q’
motherboards in each cost range purchases. Also determine the unit cost per
motherboard

(C(Q)/Q)-
> 1 >‘ e> 3?“

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X In the calculation of an optimal policy for an all-units

the EOQ values for each of the three order 00513,,mfl
and Q”) = 925 . The all-units discount schedule
this information only, can you determine
diagram for this and also explain your mm; , '

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