Week 7 assignment. How does MRP relate to CIM? Management Essay

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ASSIGNMENT
1 How does MRP relate to CIM? Hint: In addition to the reading assignment refer to Appendix B in the textbook.
Jacobs & Chase (2018), assert that computer-integrated manufacturing (CIM) is similar to the MRP computer. This is because both of them are manufacturing approaches for using the computer to control the whole process of production. Additionally, both of them allow personal processes to exchange information with each other. Through computer-integration, computers are less disposed to to error and they can manufacture at a fast speed. The main benefit of computer integration is the ability to develop automated manufacturing processes.
2. In cases where demand is difficult to predict, which probability models would you use the risk associated with stock out is managed? Briefly describe how each model would be used.
Jacobs and Chase (2018), examine three probability models. They include the fixed-time period, fixed-order quantity, and single period. These probability models are very important in mitigating all the risks that are connected with stock out. A fixed-order period and fixed-order quantity are appropriate when it is difficult to predict demand. For instance, the fixed-order quantity model can be reordered when the level of the stock reaches a certain level and more units are ordered. However, the fixed-time period is more beneficial there are intervals when a set of items are being ordered.
3. Dunstreet’s Department Store would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 5,000 per year. The store is open 365 days per year. Every two weeks inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. The standard deviation of demand for the sheets is five per day. There are currently 150 sheets on hand. How many sheets should you order?D = 5000/365 = 13.70 sheets
T = 14 days
L = 10 days
SD of daily demand = daily
I = 95%
Z (standard normal distribution) = 1.64
T plus L which Is 14 plus 10 is 24
q= 13.70 *(24) + 1.64(24)−130 =
239 sheets
4. You have a business in which you sell very inexpensive items and very expensive items. Would you use a fixed-time period or a fixed-quantity period model to order the expensive items? Explain your decision
In such a situation, I would use a fixed-quantity period model for the expensive. This is because this model maintains items that are expensive at a safety stock level. Additionally, an individual can also restock the items at a particular level. This model also generates order quantitates from time to time depending on the rates of usage (Jacobs & Chase, 2018). On the other hand, the fixed-time period model can sometimes retain a lot of safety stock. Further, this model can run of stock and this is very expensive for any organization.
5. Holding cost is handled differently in MRP and EOQ models. Describe those differe...