IHI 95


1) Georgia Products offers the following discount schedule for its 4- by 8-foot sheets of good-quality plywood:
Order Unit Cost ($)
9 sheets or less 18.00
10 to 50 sheets 17.50
More than 50 sheets 17.25
Home Sweet Home Company orders plywood from Georgia Products. Home Sweet Home has an ordering cost of $45. The carrying cost is 20%, and the annual demand is 100 sheets. What do you recommend?

2) The Webster Manufacturing Company produces a popular type of serving cart. This product, the SL72, is made from the following parts: 1 unit of Part A, 1 unit of Part B, and 1 unit of Subassembly C. Each Subassembly C is made up of 2 units of Part
D, 4 units of Part E, and 2 units of Part F. Develop a material structure tree for this.

3) The lead time for each of the parts in the SL72 (problem above) is one week, except for Part B, which has a lead time of two weeks. Develop a net materials requirements plan for an order of 800 SL72s. Assume that currently there are no parts in inventory.

4) Refer to problem above. Develop a net material requirements plan assuming that there are currently 150 units of Part A, 40 units of Part B, 50 units of Subassembly C, and 100 units of Part F currently in inventory.