im Exam Practice Questions 596y3r

IM Problems First Exam – Basics of Supply Chain Management Problem One Beginning Inventory = 300 units Ending Inventory = 400 units Sales Forecast: Month: 1 2 Quantity: 300 100

3 400

4 300

5 500

What is the required monthly production to achieve level production?

Answer: Total forecast = 300 + 100 + 400 + 300 + 500 = 1,300 1300 - beg bal (300) + end bal (400) = 1400 1400 / 5 months = 280 / month to achieve level production goal Problem Two Lead time = 5 weeks Average demand = 200 / week Safety stock = 300 units Order quantity = 1500 units What is the reorder point? Answer: 5 weeks * 200 units / week = 1000 units + 300 (safety stock) = 1300 (note that the order quantity is irrelevant for this question) What is the average inventory? Answer: 1500 (order quantity) / 2 + 300 (safety stock) = 1050

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IM Problems First Exam – Basics of Supply Chain Management Problem Three On hand = 400 Forecast: week amount:

1 100

2 200

3 300

4 200

MPS receipts:

200

150

400

300

What is the projected available balance at the end of weeks 1-4?

Answer: week

1 500

2 450

3 550

4 650

# of machines = 5 # of shifts = 1 shift length = 30 hours efficiency = 80% utilization = 90% Week 1 Actual output 130

2 100

3 140

Problem Four

4 80

What is the rated capacity?

Answer: (30 hours * 5 machines * 1 shift) = 150 * .8 (efficiency) = 120 * .9 (utilization) = 108 hours What is the demonstrated capacity? Answer: 130 + 100 + 140 + 80 / 4 = 113 hours

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