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Consider the example of No name Computer Company presented in Problem 4. Suppose that the setup cost for the production of the motherboards is $180 and the holding cost is h = $0.40 per motherboard per week. Using part period balancing, determine the planned order release for the motherboards and the resulting gross requirements schedule for the DRAM chips.
Problem 4
The No name Computer Company builds a computer designated model ICU2. It imports the motherboard of the computer from Taiwan, but the company inserts the sockets for the chips and boards in its plant in Lubbock, Texas. Each computer requires a total of ninety 64K dynamic random access memory (DRAM) chips. Noname sells the computers with three add-in boards and two disk drives. The company purchases both the DRAM chips and the disk drives from an outside supplier. The product structure diagram for the ICU2 computer is given in Figure 8–6. Suppose that the forecasted demands for the computer for weeks 6 to 11 are 220, 165, 180, 120, 75, 300. The starting inventory of assembled computers in week 6 will be 75, and the production manager anticipates returns of 30 in week 8 and 10 in week 10.
a. Determine the MPS for the computers.
b. Determine the planned order release for the motherboards assuming a lot-forlot scheduling rule.
c. Determine the schedule of outside orders for the disk drives.
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