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Final Exam | Final Exam | ChM006x Courseware | edX

Course  Final E…

 Final E…

 Final E…

Final Exam

FE 1. Jane’s Teddy Bears 0.0/5.0 points (graded)

Instructions: Answer the question and click Submit. Jane’s Teddy Bears from Manchester are selling stu ed toys all around the world. At the moment, the market in Brazil is expanding and Jane is producing teddy bears as fast as she can to meet demands. The reason for the success is that Jane have launched a product line with teddy bears themed after football teams, and even individual players, something that really resonates with the Brazilian market. Jane is now in the process of shipping 35 pallets of products in time for the national football playo s. Each pallet contains 90 teddy bears. Each bear is packaged in a box with the dimensions 20 x 25 x 35 cm and each box weighs 450 grams. An empty pallet weighs 23 kg. A 20 ft container loads 12 pallets. A 40 ft container loads 25 pallets. Jane has two main options, lease containers or let a forwarder handle the entire transport.

20ft container

40ft container

Capacity, pallets

12

25

Rent, $

200

300

Transport port-port, $

600

800

Haulage (both ends), $

50

70

If a forwarder manages the transport, Jane pays $155 per tonne (1 tonne = 1000 kg). However, the forwarder applies a cuto density at 270 kg/m3, meaning that goods below that density pays as if they weighed 270 kg/m3.

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What should Jane do? What is the best alternative? • Lease 3 x 20ft containers? • Lease 2 x 40ft containers? • Lease 1 x 20ft + 1 x 40ft containers? • Use forwarder? Calculate the combined transport cost for the di erent alternatives! Enter the cost that represents the best alternative (lowest integer value).

$

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FE 2. Chemical Industry 0.0/4.5 points (graded)

Instructions: Answer the questions and click Submit. A supplier for the chemical industry sells sulphuric acid to two customers. The supplier manages the stock levels (VMI) for both customers. The setup looks like this:

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The supplier has separate agreements with each customer regarding stock level interval. For Customer 1, the stock level must be between 8-25 m3. For Customer 2, the agreement is 5-17 m3. The distance D1 for Customer 1 is 100 km. The distance D2 for Customer 2 is also 100 km. The distance between the Customer 1 and Customer 2 is 50 km. The transport cost is assumed to be proportional to the distance. The truck loads 30 m3. Assume that once a stock reaches its lower limit, a replenishment is ordered and delivered so that the stock level the next day will be increased with the delivered quantity. Example: The current stock level is 9 m3. The usage rate is 5 m3/day and the lower limit is 5 m3. The top limit is 17 m3. Therefore, we want the stock level for the next day to be 17 m3. This means that we have to deliver (17 - 9) + 5 = 13 m3, since 5 m3 will be used during the same day as the delivery. In the table below, the current situation is presented: Customer 1

Customer 2

Storage level, day 1

V1 = 17 m3

V2 = 12 m3

Product usage rate

8 m3/day

5 m3/day

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Tip: Use tables to plan the deliveries and nd the answers to questions 2a-2i. Click here to open empty day-by-day delivery tables

2a. Assume Customer 1 manages their own inventory. Also assume that an order is triggered when the stock level falls below 8 + 8 = 16 m3 and that delivery takes place the next day. Disregard Customer 2 in questions 2a-2c. Which day in the coming 10 days' period is the rst delivery needed? Enter the correct integer value.

(day)

2b. During the coming 10 days' peiod, how many deliveries are needed? Enter the correct integer value.

number of days

2c. How many kilometers are needed in total for the coming 10 days’ deliveries? Enter the correct integer value.

km

2d. Similarily to question 2a-2c above, assume that Customer 2 manages their own inventory. Also assume that an order is triggered when the stock level is 5 + 5 = 10 m3 and that delivery takes place the next day. Disregard Customer 1. How many kilometers are needed in total for the coming 10 days’ deliveries? Enter the correct integer value.

km

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2e. Assume that a Vendor Managed Inventory setup is used in questions 2e-2i. On which day in the coming 10 days' period is the rst delivery run needed? Enter the correct integer value.

(day)

2f. How many kilometers will the truck have to drive to complete the rst delivery run? Enter the correct integer value.

km

2g. On which day in the coming 10 days' period is the second delivery run needed? Enter the correct integer value.

(day)

2h. How many delivery runs are needed in total? Enter the correct integer value.

number of delivery runs

2i. How many kilometers will the truck have to drive in total to make the deliveries to Customer 1 and 2? Enter the correct integer value.

km

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FE 3. Skateboard ICE 0.0/7.0 points (graded)

Instructions: Answer the questions and click Submit.

A company assembles and sells skateboards. One popular model is the "ICE". The nal assembly plan for April to September, which also represents 50% of a full year’s demand: Month

April

May

June

July

August

September

October

Forecast (units)

5000

7000

10000

2000

4000

3000

?

Demand (units)

4500

8000

10000

1900

4000

3200

?

The company is using MRP. The forecast for Skateboard ICE for the next coming six weeks: Week

w36

w37

w38

w39

w40

w41

Demand (forecast, units)

750

750

750

900

950

1000

The company are buying all components from di erent suppliers. They are only making the wheel assembly and the assembly of the nal skateboard, see also the diagram above. Item

Stock level

Value/item

Lot size

Lead time (weeks)

Skateboard ICE

1800

$250.00

2000

1

Decks

4000

$20.00

1500

2

Wheel assemblies

1200

$80.00

Even hundreds

1

Bolts and Nuts, M6

25000

$0.50

50000

1

Risers

30000

$1.00

50000

1

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Wheels

20000

$8.00

40000

2

Bearings

40000

$4.00

50000

2

Trucks

2000

$19.00

?

2

Nuts, M8

50000

$0.25

100000

1

The company has an ordering cost of $150/order and the inventory carrying cost is estimated to 10%.

3a. If we use moving average with n=5, what is the forecast for Skateboard ICE for October? Round o to the closest number of hundreds.

units

3b. If we use exponential smoothing with α=0.3, what is the forecast for Skateboard ICE for October? Round o to the closest number of hundreds.

units

3c. Suppose it's now week 35. In what week should production of wheel assemblies start? Answer with an integer number.

(week)

3d. In relation to question 3c above, what quantity of wheel assemblies will be needed? Answer with an integer number.

wheel assembly units

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3e. The company have had some problems with the supplier of the truck parts and therefore want to review the setup. But rst they want to check how many truck parts they should order each time by calculating the Economic Order Quantity (EOQ). What quantity of truck parts should the company order?

Round o to the closest number of hundreds that is the most economically favorable.

truck parts

3f. The supplier of the truck parts replies to the company that if they order in lots of 10 000 each time, they will get a 5 % discount. What is the total cost for the truck parts if the company order 10 000 each time? Round o to the closest integer.

$

3g. In relation to questions 3e and 3f above, which option is the most economically favorable? Select the alternative that applies.

Order truck parts according to EOQ? (See question 3e) Order truck parts according to the discount o er? (See question 3f)

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FE 4. Route Planning 0.0/5.5 points (graded)

Instructions: Answer the questions and click Submit.

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A terminal has four customers that need delivery by truck. The customers have the following demand: Customer Demand 1

5 tonnes

2

9 tonnes

3

7 tonnes

4

11 tonnes

The truck load capacity is 15 tonnes. The distances (km) between the customers and the terminal are: Terminal

Customer 1

Customer 2

Customer 3

Terminal

-

Customer 1

120

-

Customer 2

90

40

-

Customer 3

140

20

30

-

Customer 4

180

15

45

60

Customer 4

-

4a. Calculate the driving distance savings matrix. Disregard from any load capacity issues at this point. 4a.1. How much is saved if Customer 1 and 2 are served in one route? Enter the correct integer value in the input eld.

km

4a.2. How much is saved if Customer 1 and 3 are served in one route? Enter the correct integer value in the input eld.

km

4a.3. How much is saved if Customer 1 and 4 are served in one route?

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Enter the correct integer value in the input eld.

km

4a.4. How much is saved if Customer 2 and 3 are served in one route? Enter the correct integer value in the input eld.

km

4a.5. How much is saved if Customer 2 and 4 are served in one route? Enter the correct integer value in the input eld.

km

4a.6. How much is saved if Customer 3 and 4 are served in one route? Enter the correct integer value in the input eld.

km

4b. Given the truck load capacity, to how many customers can the truck deliver in one route, at the most? Select the alternative that applies.

2 3 4

4c. Given the truck load capacity, how many routes are needed to deliver to all four customers?

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Select the alternative that applies.

2 3 4

4d. Given the truck load capacity, which of the routes saves the most on driving distance? Select the alternative that applies.

Customers 1 and 2 Customers 1 and 3 Customers 1 and 4 Customers 2 and 3 Customers 2 and 4 Customers 3 and 4

4e. For the route that saves the most on driving distance, how many tonnes should be loaded? (See 4d above.) Enter the correct integer value in the input eld.

tonnes

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4f. What is the total driving distance for the combination of route alternatives that serves all customers, saves the most on total driving distance and takes the truck load capacity into account? Enter the correct integer value in the input eld.

km

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FE 5. Online Store 0.0/6.0 points (graded)

Instructions: Answer all the questions and click Submit. FE 5. An online store sells a product for which the daily demand is normally distributed with a mean of 120 units and with a standard deviation of 10 units. We assume the source of supply has a constant lead time of 14 days. The cost for placing an order is $75 and the annual holding cost per item is $0.5. There is no stock out cost and we assume that un lled orders are lled as soon as the orders arrives. Sales operate 365 days/year. The company wants to have a 95% service level of not stocking out during the lead time. Tables that might be useful for answering the questions (click to open): Normal Distribution function table Service loss function table 5a. What is the Economic Order Quantity (EOQ)?

Enter the correct value in the input eld. Round o to the closest integer.

units

5b. What Safety Stock level does the company need to reach the desired service level? Enter the correct value in the input eld. Round o to the integer value that makes most sense.

units

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5c. What Re-Order Point (ROP) level does the company need to reach the desired service level? Enter the correct value in the input eld.

units

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FE 6. On-line Store and Kanban 0.0/6.0 points (graded)

Instructions: Answer the questions and click Submit. FE 6. Assume the on-line store in question FE 5 above make the products ready for shipping on a package line, i.e. they pack items in customised packages, labelling etc. Before shipping, they store the products in an internal warehouse. Between the warehouse and the package line they want to use a Kanban system. The package line is supported by a materials manager, who inspects the line every hour. According to his notes, the time from demand to replenishment is 3 hours. They transport the products in containers, each containing 20 units. The package line work only day shift, i.e. the operation time per day is 6 hours. 6a. What's the number of Kanban cards they need, if a safety factor of 0.3 is used? Enter the correct value in the input eld. Round o to the closest (higher) integer.

cards

The company also wants to see if they can use a Kanban system towards the supplier, instead of the ROP system. They want to keep the same service level, i.e. 95%. As stated in question FE 5, the daily demand is normally distributed with a mean 120 and a standard deviation of 10. The lead time is 14 days. The supplier ships in boxes each containing 50 units. (Hint: You will need the Safety Stock value to answer the questions below.) 6b. What will the safety factor α need to be?

Enter the correct value in the input eld. Answer with one valid digit.

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6c. How many Kanban cards do they need in this case?

Enter the correct value in the input eld. Round o to the closest (higher) integer.

cards

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