Use the critical ratio priority rule for one
Problem 2
A manufacturer has decided to locate a new factory in northwestern United States to serve growing demand in that market. It has narrowed the potential sites down to two finalists, City A and City B. It has developed a list of important factors to consider in selecting a site, and rated each as shown in the following table:
During the past month a firm shows the following metrics:
| Average days of accounts receivable | 6.75 days |
|---|---|
| Average daily cost of sales | $ 35,000 |
| Current total value of inventory | $300,000 |
| Current value of accounts payable | $200,000 |
Compute the cash-to-cash cycle time. Round to two decimal places in all of your calculations.
Using single exponential smoothing with α = 0.2 and a September forecast = 65, calculate a forecast for October.
Using simple linear regression, calculate the trend line for the historical date. Say the X axis is April = 1, May = 2, and so on, while the Y axis is demand.
UA Hamburger Hamlet (UAHH) places a daily order for its high-volume items (hamburgers patties, buns, milk, and so on). UAHH counts its current inventory on hand once per day and phones in its order for delivery 24 hours later. Determine the number of hamburgers UAHH should order for the following conditions:
| Average daily demand | 600 |
|---|---|
| Standard deviation of demand | 100 |
| Desired service probability | 99% |
| Hamburger inventory | 800 |
Construct an indented parts list.
To produce 100 units of A, determine the number of units of B, C, D, E. F, G, and H required.
Willard Lock Company is
losing market share because of horrendous due-date performance and long
delivery lead times. The company’s inventory level is high and includes
many finished goods that do not match the short-term orders. Materials
control analysis shows that purchasing has ordered on time, the vendors
have delivered on time, and the scrap/rework rates have been as
expected. However, the buildable mix of components and subassemblies
does not generally match the short-term and past-due requirements at
final assembly. End-of-month expediting and overtime are the rule, even
though there is idle time early in the moth. Overall efficiency figures
are around 70 percent for the month. These figures are regarded as too
low.
You have been hired as a consultant and must come up with recommendations. Help the firm understand its problems. Specifically state some actions that it should take.