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1. LaserPed, Inc. is a retailer of bicycles




Question;1. LaserPed, Inc. is a retailer of bicycles and scooters;located in Rockville, Maryland. LaserPed procures supplies of bicycles;manufactured by Bikes R Us, Inc. located in Chicago, IL via wholesaler;Mobility, Inc of Baltimore, MD. Bikes R Us produces various models of mountain;bikes including the ?Deluxe A? model (see Figure 1). Bikes R Us produces 10;different bike models and other products. These products are sold throughout;the U.S. and Canada. It has wholesalers in most major cities. BikesRUs? annual;sales in 2013 was $ 500 million.;The following table gives LaserPed?s annual sales of ?Deluxe;A? model for the past nine years (2005-2013). Due to the economic decline it is;assumed that sales of Deluxe A in 2014 will remain flat and comparable to 2009-;2013. Figure 2 shows the bike supply chain.;Sales data for Deluxe A;Item;2005;2006;2007;2008;2009-2013;LaserPed Scooter;5,200;5,100;5,100;5,100;5,000 each year;Fig 1: Model Deluxe A;Fig 2: Supply Chain;Manufacturer Wholesaler;Retailer;(Bikes R Us) (Mobility) (LaserPed);The factory (Bikes R Us) procures all the components and;parts from domestic suppliers. Usually the factory, wholesaler, and the retailer;work one shift per day and have 250 work days each year with uniform production;rate. The bikes are sold to retailers for $ 300.00 per unit and it costs the;company $ 200.00 to produce each unit including all labor and overhead.;Ordering cost at LaserPed is estimated to be $ 30 per order;and inventory carrying cost (includes space, capital cost) is estimated to be;about 25% per year.;As the Operations Manager of LaserPed, you have to find the;following;How;many Deluxe A bikes should LaserPed order in 2014? [1 point};What;should be the optimal lot size for each order (economic order quantity);for this model?;How;much inventory of Deluxe A bikes will the company (LaserPed) carry in stock;on average if they order EOQ? How many orders should LaserPed place;annually;Find;annual (ordering+ inventory carrying) cost?;What;should be the reorder point if the lead time is 10 days?;2. A recent Business Analyst (GW BBA) hired to streamline supply;chain found that LaserPed?s daily demand for bikes actually follows an;approximate normal distribution with mean 20 units and standard deviation of 5;units. She negotiated a fixed lead time of 5 days with the wholesaler and;wanted to provide a service level of 99%. (z value for 99% is 2.36);a) Given;the above information and data in Problem no. 1 above, would you change your;ordering pattern? Why?;b) What;would be the new reorder point?;c) What;would be the new average inventory?;d) What;would be the safety stock?;e) To improve inventory;performance, the Business Analyst at LaserPed decided to directly source bikes;from the manufacturer (BikesRUs) and link their demand with BikesRUs production;plans. BikesRUs can produce bikes at a rate of 400 per day, setup cost is $ 400;per setup, and annual inventory carrying cost is 25% of the cost of bike. The analyst was able to negotiate a lower cost;of $ 240 per bike in exchange for long term orders. What would be the economic;production quantity? [6 points] What would be the maximum inventory? [2 points];What would be the production run time and total cycle time (time between two;successive production runs)?;The following table;contains information on the cost to run three jobs on four available;machines. Determine as assignment plan that will minimize costs. [12;points] What will be the minimum cost?;Job;Machine A;Machine B;Machine C;Machine D;1;12;16;14;10;2;9;8;13;7;3;15;12;9;11;Product X (finished;product) is made of two units of Y (sub-assembly) and three of Z;(sub-assembly). Y is made of one unit of A and two units of B. Z is made;of two units of A and four units of C. Lead time for assembling X is one;day, Y, two days, Z three days. Lead time for procuring A from vendor is;two days, B, one day, and C, three days.;a. Draw;the bill of materials.;b. If;100 units of X are needed on day 10, develop a planning schedule showing when;each item should be ordered and in what quantity.;5. National;Cranberry Cooperative (NCC) is an organization, formed and owned by growers of;cranberries to process and market berries. During the cranberry harvest season;trucks bring wet berries from the fields to the processing plant during a;workday that runs from 6 AM to 6 PM. Employees work in two shifts?the first from;6 AM to 2 PM and the second from 2 PM to 10 PM. Employees who work more than 8;hours per day receive overtime payment of 50% more than the base rate.;Prevailing base wage rate is $ 10 per hour. On peak days, approximately 18,000;bbls (barrels) of berries are trucked per day. The table below shows the;arrival information of wet berries during a typical peak day.;Time;Berries;Arrived (in bbls);6;AM-7 AM;800;7;AM-8 AM;800;8;AM-9 AM;1,100;9;AM-10 AM;1,900;10;AM-11 AM;2,100;11;AM-12 PM;2,500;12;PM-1 PM;1,000;1;PM-2 PM;2,000;2;PM-3 PM;1,400;3;PM-4 PM;1,300;4;PM-5 PM;1,000;5;PM-6 PM;1,000;Trucks carry 100 bbls on average. Trucks dump their contents;in 12 holding bins. Each holding bin has a storage capacity of 250 bbls. When;the bins are full, incoming trucks must wait until it has sufficient available;space. A conveyor moves berries from the bin to the processing plant. The plant;starts its operation as soon as berries arrive. The first process in processing;plant after dumping is dechaffing. NCC has three dechaffing machines. Each;dechaffing machine can process 1,000 bbls per hour. The second process is;drying. NCC has one dryer with 750 bbls/hr of processing capacity. The final;process is packing and they have three packing machines. Total processing;capacity of the three different packing machines is 3,000 bbls per hour (i.e.;each packing machine can process 1,000 bbls per hour).;Draw a;process flow diagram and find the process bottleneck.;Find;when does truck queuing start?;How;many hours of overtime work are necessary?;How;would you streamline the process to avoid the truck queuing? At what cost?;A dryer costs $75,000, a dechaffing machine $ 30,000, a packing machine $;5,000 and a holding bin costs $5,000. Show at least two possible;alternatives and recommend one.;6.Identify;and briefly explain five principal strategies that stand out (differentiate) Aravind;Eye Health Care Operations.


Paper#52956 | Written in 18-Jul-2015

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