Can you please discuss each of these for me?
Problem 1. In cases where demand is difficult to predict, which probability models would you use so that the risk associated with stock out is managed? Briefly describe how each model would be used.
Problem 2. You have a business in which you sell very inexpensive items and very expensive items. Would you use a fixed-time period or a fixed-quantity period model to order the expensive items? Explain your decision.
Problem 3. If you are in the business of making roller skates, would the wheels needed be dependent or independent on the production levels? Would the demand for roller skates be dependent or independent?
Problem 4. Dunstreet's Department Store would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 5,000 per year. The store is open 365 days per year. Every two weeks inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. Standard deviation of demand for the sheets is five per day. There are currently 150 sheets on hand. How many sheets should you order?
Problem 5. The question of flexibility within a master production schedule depends on several factors. Unless some operating rules are established and adhered to, the system could become chaotic. What techniques does management use to maintain a reasonably controlled flow through the production system?
Problem 6. Assume you are building custom motorcycles. All custom bikes use some standard parts. Part number HD-60 is stocked in your inventory of component parts. Each year you use about 2,000 HD-60 components at a cost of $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for HD-60 components, it costs $10.
(a) How many items of HD-60 should be ordered at a time?
(b) What are the annual costs of ordering HD-60 components?
(c) What is the annual cost of storing HD-60 components?
Problem 7. Product A is an end item and is made from two 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. Show the bill of materials (product tree structure).
Problem 8. Discuss the importance of the master production schedule in an MRP system.