04 Jun Question 5. (Chapter 12) The Burdell Wheel and Tire
Question
5. (Chapter 12) The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry. Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation. The supplier will be selected based
tires, and the company operates 250 days a year. The following data are available for two suppliers being considered.
Shipping Annual Price Annual L ead Annual
Supplier Shipping Holding Time Administrative
Quantity /unit
Costs Cost/unit (days) Cost
L exington Tire 2,000 $18,000 $41 $8.20 7 $14,000
Irmo Auto 1,500 $22,000 $40 $8.00 5 $18,000
Using the Total Cost Analysis for Supplier Selection, which supplier should Burdell choose? Provide details to justify your answer.
6. (Chapter 13) In a short paragraph, explain in what ways reverse logistics management is more difficult than the management of more typical supply chain flows.
7. (Chapter 15) Auto Data produces custom engineering testing equipment. The following six orders are currently in the design department:
Time Since
A rrival Process Time Due Date
Job (weeks ago) (weeks) (weeks from now)
A 5 2 7
B 6 8 16
C 7 4 4
D 4 10 17
E 2 5 15
F 3 12 18
a. Create a schedule using the first-come first-serve (FCFS) rule, calculating the average flow time and average weeks past due.
b. Create a schedule using the earliest due date (EDD) rule, calculating the average flow time and average weeks past due.
c. Which rule gives the best schedule based on average flow time and average weeks past due?
8. (Chapter 16)
a. Complete the inventory record below for an FOQ of 200 units.
b. Discuss weaknesses of MRP. List at least three and explain each in a sentence or two.
Item: A Lot Size: 200 units
L ead Time: 2 weeks
W eek
1 2 3 4 5 6 7 8
G ross 120 150 110 150 130 160 130 150
Requirements
Scheduled 200 200
Receipts
Projected
On-hand
Inventory 50
Planned
Receipts
Planned
O rder
Releases
Note: Problems 1 (+5 bonus), 2, 7, and 8 worth 15 points each and Problems 3, 4, 5, and 6
worth 10 points each.
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