Answer 2 Questions @ 1 Large Inventory Management Analytics Exercise

1. Explain the three inventory control models and the driving factor in each model. Provide examples for each one using current companies. 2. Using one of the companies from DQ 1, describe how inventory planning and accuracy can be defined using the Pareto principle. 3. Refer to the PDF & Excel speadsheet, “Inventory Management,” to complete the “Analytics Exercise: An MRP Explosion -Brunswick Motors,” Answer Questions 1-3.
inventory_management.pdf

mgt_655_rs_t3_inventorymangement_student.xlsx

Unformatted Attachment Preview

Week
Quantity
1
2
3
4
Engine Assembly Master Sch
5
Gear box requirement
Week
Gross Requirements
Scheduled Receipts
Projected Available Balance
Net Requirements
Planned Order Receipt
Planned Order Release
1
0
17
2
0
5
17
3
0
4
0
5
0
0
0
0
3
4
0
Input shaft requiremen
5
0
47
47
From E12 for 2 Weeks Lead Time
Week
Gross Requirements
Scheduled Receipts
Projected Available Balance
Net Requirements
Planned Order Receipt
Planned Order Release
1
10
30
2
20
37
47
0
From F24 for 3 Weeks Lead Time
Part 2
Gear Box
Given Information
Setup per order=
Inventory Carrying Cost per unit per period
$90.00
$2.00
Input Shaft
Given Information
Setup per order=
Inventory Carrying Cost per unit per period
$45.00
$1.00
Number of orders ( count cells with values for planned o
Set-up Costs=# of Orders X Setup Costs
(8*90)
Inventory (2)*Inventory Carrying Cost
Total
Setup Costs=5 orders*45
Inventory=(30??)*1
Total
Total Cost
Engine Assembly Master Schedule
6
7
8
9
10
11
12
Gear box requirements
6
7
0
0
8
0
9
0
10
0
11
0
0
0
0
0
12
0 Since Gear box 1 X Engine Assembly, use Ma
From Problem
0 Cell B10, Beg Balance of 17- Gross Requirem
Net Req=Gross Req-Projected Available Bala
Same as row above
8
0
9
0
10
0
11
0
0
0
0
0
0
Input shaft requirements
6
7
0
0
0
0
unt cells with values for planned order release)
ers X Setup Costs
ntory Carrying Cost
$0.00
$0.00
$0.00
12
Since Input Shaft is 2 X Gear Box, then each w
From Problem
0 Cell B22, Beg Balance of 40- Gross requireme
Net Req=Gross Req-Projected Available Bala
Same as row above
Planned Order Receipt from 3 weeks in futur
box 1 X Engine Assembly, use Master Engine Assembly Qty
Cell C10 Carryover
ross Req-Projected Available Balance from prior week
Shaft is 2 X Gear Box, then each week is 2 X Row 13
Week 5 and beyond 0 since no scheduled receipts
ross Req-Projected Available Balance from prior week
Week
Quantity
1
Lead Time
2
2
3
4
Engine Assembly Master Sch
5
Gear box requirement
Week
Gross Requirements
Scheduled Receipts
Projected Available Balance
Net Requirements
Planned Order Receipt
Planned Order Release
1
0
17
2
0
5
22
3
0
4
0
5
0
0
0
0
From E12 for 2 Weeks Lead Time
Week
Gross Requirements
Scheduled Receipts
Projected Available Balance
Net Requirements
Planned Order Receipt
Planned Order Release
1
30
10
2
3
4
0
Input shaft requiremen
5
0
22
32
32
0
0
From F24 for 3 Weeks Lead Time
Part 2
Gear Box
Given Information
Setup per order=
Inventory Carrying Cost per unit per period
$90.00
$2.00
Input Shaft
Given Information
Setup per order=
Inventory Carrying Cost per unit per period
$45.00
$1.00
Number of orders ( count cells with values for planned o
Set-up Costs=# of Orders X Setup Costs
3*90)
Inventory (88)*Inventory Carrying Cost
Total
Setup Costs=2 orders*45
Inventory=(74)*1
Total
Total Cost
Engine Assembly Master Schedule
6
7
8
9
10
11
12
Gear box requirements
6
7
0
0
8
0
9
0
10
0
11
0
0
0
0
0
12
0 Since Gear box 1 X Engine Assembly, use Ma
From Problem
0 Cell B10, Beg Balance of 17- Gross Requirem
Net Req=Gross Req-Projected Available Bala
Planned order receipt=projected available ba
Stagger Order Releases to reduce Costs
8
0
9
0
10
0
11
0
0
0
0
0
0
Input shaft requirements
6
7
0
0
0
0
12
Since Input Shaft is 2 X Gear Box, then each w
From Problem
0 Cell B22, Beg Balance of 40- Gross requireme
Net Req=Gross Req-Projected Available Bala
Planned Order Receipt from 3 weeks in futur
unt cells with values for planned order release)
ers X Setup Costs
tory Carrying Cost
sum of projected available balance
$0.00
$0.00
$0.00
box 1 X Engine Assembly, use Master Engine Assembly Qty
Next cell, Gross Req-Scheduled Receipts
ross Req-Projected Available Balance from prior week
der receipt=projected available balance ? requirements
Shaft is 2 X Gear Box, then each week is 2 X Row 13
Week 4 and beyond 0 since no scheduled receipts
ross Req-Projected Available Balance from prior week
…
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