Westside

Westside Technology Consulting is an information technology consulting firm based in Los Angeles, California. The firm is owned by two engineers with extensive experience in the hardware design field who are able to act as lead engineers on consulting projects, as are two other members of the firm. Westside also employs 9.5 other engineering staff members (one works only half time) and 15 electronics technicians. Westside works on projects which can be classified into one of three categories: major design projects, trouble-shooting projects, and hourly contract work. Major design projects typically require one lead engineer, three staff engineers, and four technicians. Trouble-shooting ... click for more

Problem #2 Inventory management problem : Cal Automotive Products

Problem #2 Cal Automotive Products Cal Automotive Products manufactures components used in the automotive industry. The company purchases parts for use in its manufacturing operation from a variety of different suppliers. One supplier provides a part where the assumptions of the EOQ model are realistic. The annual demand is 5000 units, the ordering cost is $85 per order, and the annual holding cost rate is 20%. a. Determine the economic order quantity if the cost of the part is $25 per unit. b. Determine the reorder point if the lead time for an order is 12 days. Assume 250 days of operation per year. c. Determine the reorder point if the lead time for the part is seven weeks (35 days)... click for more

Inventory management: Safety-stock, Probability of stock-out, Re-order point

Problem #3 Office Max A product with an annual demand of 1000 units has Co = $25.50 and Ch = $8. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with µ = 25 and std deviiation= 5. a. Determine the recommended order quantity. b. Determine the reorder point and safety stock if the firm desires, at most, a 2% probability of stock-out on any given order cycle. c. If a manager sets the reorder point at 30, determine the probability of a stock-out on any given order cycle. Determine the number of times the manager should expect a stock-out during the year if this reorder point were used.

Inventory Management: Comparing Basic EOQ model with the Backordering model

Wiley’s TV Town sells VCR’s. Weekly demand has averaged 40 VCR’s per week. Wiley makes a gross profit of $50 per VCR sold (not including inventory costs). Holding costs are $260 per VCR per year and reorder costs are $42 per order. Lead time is 1 week and the store operates 52 weeks in a year. Part A Determine: 1. the optimal number of VCR’s Wiley should order (integer value) 2. the cycle time (in weeks); 3. his yearly net profit. Part B Wiley is considering allowing backorders. Wiley intends to offer customers a discount of $20 per week for each week the customer must wait for a VCR. Wiley estimates that this policy will result in a drop in demand to 36 VCR’s p... click for more

Forecast - U.S. general aviation shipments

(a) Plot the data on U.S. general aviation shipments. (b) Describe the pattern and discuss possible causes. (c) Would a fitted trend be helpful? Explain. (d) Make a similar graph for 1992–2003 only. Would a fitted trend be helpful in making a prediction for 2004? (e) Fit a trend model of your choice to the 1992–2003 data. (f) Make a forecast for 2004, using either the fitted trend model or a judgment forecast. Why is it best to ignore earlier years in this data set? Airplanes U.S. Manufactured General Aviation Shipments, 1966–2003 Year Planes 1966 15,587 1967 13,484 1968 13,556 1969 12,407 1970 7,277 1971 7,346 1972 9,774 1973 13,646 1974 14,166 1975 14,056 1976 15,451 197... click for more