dat, inc. produces digital audio tapes to be used in the consumer audio division.

DAT
lacks sufficient personnel in its inventory supply section to closely control each item
stocked, so it has asked you to determine an ABC classification. Here is a sample
from the inventory records:
ITEM

MONTHLY
DEMAND

PRICE PER
UNIT

ITEM

1
2
3

700
200
2000
1100
4000

$6.00
$4.00
12
20.
21

6
7
8
9
10

4
5

AVERAGE
MONTHLY
DEMAND
100
3,000
2,500
500
1000

PRICE PER
UNIT
10.00
2.00
1.00
10
2

A) Develop an ABC classification for these 10 items.

2. Product A is an end item and is made from 2 units of B and four of C. B is made
of three units of D and two of E. C is made of two units of F and two of E.
A has a lead time of one week. B, C, and E have lead times of two weeks and D and
F have lead times of three weeks.
A. Show the bull of materials (product structure tree.)
B. If 100 units of A are required in Week 10, develop the MRP planning schedule,
specifying when items are to be ordered and received. There are currently no
units of inventory on hand.
12.5. DAT, Inc., needs to develop an aggregate plan for its product line. Relevant
data are :
Product Time

1 hour per unit

Avg. labor cost

Work week

$10 hr.
5 days, 8 hours
each day
Assume 20 work
days per month

Days per month

Beginning
inventory
Safety Stock
Shortage cost
Carrying cost

500 Units
One-half month
$20 per unit per
month
$5 per unit per
month

Management prefers to keep a constant workforce and production leve, absorbing

variations in demand through inventory excesses and shortages. Demand not met is
carried over to the following month.
Develop an aggragate plan that will meet the demand and other conditions of the
problem. Do not try to find the optimum; just find a good solution and state the

procedure you might use to test for a better solution. Make any necessary
assumptions.
11.2 Here are the actual tabulated demands for an item for a nine month period
(January - Sept.) Your supervisor wants to test two forecasting methods to see which
method was better over this period.
Month:
January
Feb
March
April
May

Actual:
110
130
150
170
160

June
July
Aug.
Sept

180
140
130
140

A. Forecast April Spet. Using a 3 month moving avg.

B. Use simple exponential smoothing with an alpha of .3 to estimate April
Sept.
C. Use MAD to decide which metrod produced the better forecast over the 6month period.

10.3 A bottling plant fills 2400 bottles every two hours. The lead time is 40 mins.
And a container accommodates 120 bottles. The safety stock is 10 percent of
expected demand. How many kanban cards are needed?