RParslow_M444_M4_A4.3CPs Chapter 7 pg. 245-247 1. Given the following inventory information, perform an ABC analysis. ITEM NUMBER UNIT COST $$ B8867...
RParslow_M444_M4_A4.3CPs
Chapter 7 pg. 245-247
Given the following inventory information, perform an ABC analysis.
| ITEM NUMBER | UNIT COST $$ | ANNUAL USAGE (UNITS) | TOTAL COST | % OF TOTAL COST | CATAGORY |
| B8867 | 6.00 | 100 | 600 | 0% | |
| J1252 | 5.25 | 6,500 | 34,125 | 24% | |
| K9667 | 0.25 | 4,000 | 1,000 | 1% | |
| L2425 | 1.00 | 1,500 | 1,500 | 1% | |
| M4554 | 5.50 | 2,000 | 11,000 | 8% | |
| T6334 | 70.00 | 500 | 35,000 | 25% | |
| W9856 | 0.75 | 800 | 600 | 0% | |
| X2215 | 1.50 | 8,000 | 12,000 | 8% | |
| Y3214 | 32.00 | 1,000 | 32,000 | 23% | |
| Y6339 | 4.00 | 3,500 | 14,000 | 10% | |
| TOTAL | 141,825 | 100% |
Given the following inventory information, construct an:
ABC Analysis by annual dollar usage
ABC Analysis by current inventory value
An ABC inventory matrix. Is the firm stocking the correct inventories?
| ITEM NUMBER | UNIT COST $ | ANNUAL USAGE (UNITS) | CURRENT INVENTORY (UNITS) | ANNUAL DOLLAR VALUE | INVENTORY VALUE | % |
| B8867 | 6.00 | 100 | 8,000 | 600.00 | 48,000.00 | 0.34 |
| J1252 | 5.25 | 6,500 | 120 | 34,125.00 | 630.00 | 0.00 |
| K9667 | 0.25 | 4,000 | 1,000 | 1,000.00 | 250.00 | |
| L2425 | 1.00 | 1,500 | 375 | 1,500.00 | 375.00 | |
| M4554 | 5.50 | 2,000 | 500 | 11,000.00 | 2,750.00 | |
| T6334 | 70.00 | 500 | 800 | 35,000.00 | 56,000.00 | |
| W9856 | 0.75 | 800 | 20,000 | 60.00 | 15,000.00 | |
| X2215 | 1.50 | 8,000 | 2,000 | 12,000.00 | 3,000.00 | |
| Y3214 | 32.00 | 1,000 | 500 | 32,000.00 | 16,000.00 | |
| Y6339 | 4.00 | 3,500 | 125 | 14,000.00 | 500.00 | |
| TOTAL | 141,285.00 | 142505.00 |
Given the following inventory information, construct an:
ABC Analysis by annual dollar usage
ABC Analysis by current inventory value
An ABC inventory matrix. Is the firm stocking the correct inventories?
| ITEM NUMBER | ITEM COST $ | ANNUAL USAGE (UNITS) | ANNUAL DOLLAR USAGE $ | % OF TOTAL ANNUAL $$ Usage | Classification by Annual $$ Usage |
| A967 | 32.00 | 32.00 | .02 | ||
| B886 | 6.00 | 100 | 600.00 | .42 | |
| C314 | 5.25 | 32 | 168.00 | .12 | |
| D879 | 12.50 | 54 | 675.00 | .47 | |
| E536 | 0.05 | 125 | 6.25 | 0.0 | |
| F876 | 0.07 | 423 | 29.61 | .02 | |
| G112 | 0.12 | 500 | 60.00 | .04 | |
| H098 | 1.22 | 235 | 286.70 | .20 | |
| J125 | 5.25 | 6,500 | 34,125.00 | 23.74 | |
| K966 | 0.25 | 4,000 | 1,000.00 | .70 | |
| L242 | 1.00 | 1,500 | 1,500.00 | 1.04 | |
| M455 | 5.50 | 2,000 | 11,000.00 | 7.65 | |
| N007 | 7.21 | 54 | 389.34 | .27 | |
| P231 | 5.25 | 32 | 168.00 | .12 | |
| Q954 | 3.25 | 25 | 81.25 | .06 | |
| T633 | 70.00 | 500 | 35,000.00 | 24.35 | |
| W985 | 0.75 | 800 | 600.00 | .42 | |
| X221 | 1.50 | 8,000 | 12,000.00 | 8.35 | |
| Y321 | 32.00 | 1,000 | 32,000.00 | 22.27 | |
| Z633 | 4.00 | 3,500 | 14,000.00 | 9.74 | |
| TOTAL | 143,721.15 | 100 |
| Item Number | Unit cost $ | Current Inventory Units | Current Inventory Value $ | %Total Inventory Value | Total Inventory Value | Annual Dollar Usage |
| A967 | 32.00 | 4,500 | 144,000 | 48.40 | ||
| B886 | 6.00 | 8,000 | 48,000 | 16.13 | ||
| C314 | 5.25 | 115 | 603.75 | .20 | ||
| D879 | 12.50 | 254 | 3,175.00 | 1.07 | ||
| E536 | 0.05 | 120 | 6.00 | 0.0 | ||
| F876 | 0.07 | 500 | 35.00 | 1.17 | ||
| G112 | 0.12 | 1,008 | 120.96 | .04 | ||
| H098 | 1.22 | 750 | 915.00 | .31 | ||
| J125 | 5.25 | 120 | 630.00 | .21 | ||
| K966 | 0.25 | 1,000 | 250.00 | .08 | ||
| L242 | 1.00 | 375 | 375.00 | .13 | ||
| M455 | 5.50 | 500 | 2,750.00 | 1.0 | ||
| N007 | 7.21 | 525 | 3,785.25 | 1.27 | ||
| P231 | 5.25 | 300 | 1575.00 | .53 | ||
| Q954 | 3.25 | 240 | 780.00 | .26 | ||
| T633 | 70.00 | 800 | 56,000 | 18.82 | ||
| W985 | 0.75 | 20,000 | 15,000 | 5.04 | ||
| X221 | 1.50 | 2,000 | 3,000 | 1.01 | ||
| Y321 | 32.00 | 500 | 16,000 | 5.38 | ||
| Z633 | 4.00 | 125 | 500.00 | .17 | ||
| TOTAL | 193.17 | 41,732 | 297,500.96 |
RParslow_Chapter 8 pg. 295-296
Mejza compressors uses a lean production assembly line to make compressors. In one assembly area the demand is 100 parts per eight hour day. It uses a container that holds eight parts. It typically takes about six hours to round trip a container from one work center to the next and back again. Mejza also desires to hold 15 percent safety stock of this part in the system. How many containers should Mejza compressors be using?
A: DT (1+S)/C = 100X6 (1+.15)/8 = 600(1.15)/8=690/8=86.25
3. Jim Corner, owner of corner bike rentals wants to start analyzing his company’s quality. For each bike rental there are four types of customer complaints:
a. Bike not working properly, b. bike wrong size, c. bike uncomfortable, d. bike broken during operation During the past week, his company rented 280 bikes. He received 26 total complaints.
a. What is his company’s DPMO for the past week?
26/(4)(280) X 1,000,000 = 26/(1,120) X 1,000,000 = 23,214
b. What is their six sigma operating level? 3.5
| Number Standard Deviations above the mean | Percent of Defect free output | Defects per million |
| 69.15 | 308,537 | |
| 2.5 | 84.13 | 158,686 |
| 93.32 | 66,807 | |
| 3.5 | 97.73 | 22,750 |
| 99.38 | 6,210 | |
| 4.5 | 99.865 | 1,350 |
| 99.977 | 233 | |
| 5.5 | 99.9968 | 32 |
| 99.99966 | 3.4 |
5. Through process measuring a number of pizza delivery times, mary janes pizzeria finds the mean of all samples to be 27.4 minutes, with an average sample range of 5.2 minutes. They tracked 4 deliveries per hour for 18 hours to obtain their samples.
a. is this an example of variable or attribute sampling data?
b. Find the UCL and LCL for both the x – and R-Charts.
7. Roberto’s steak house tracks customer complaints every day and then follows up with their customers to resolve problems. For the past 30 days, they received a total of 22 complaints from unhappy customers. Using this information, calculate
a. c
b. The 3 sigma control limits
