CPIM BSCM problems-module one.pdfVIP

CPIM Problems First Exam – Basics of Supply Chain Management Problem One Beginning Inventory = 300 units Ending Inventory = 400 units Sales Forecast: Month: 1 2 3 4 5 Quantity: 300 100 400 300 500 What is the required monthly production to achieve level production? Answer: Total forecast = 300 + 100 + 400 + 300 + 500 = 1,300 1300 - beg bal (300) + end bal (400) = 1400 1400 / 5 months = 280 / month to achieve level production goal Problem Two Lead time = 5 weeks Average demand = 200 / week Safety stock = 300 units Order quantity = 1500 units What is the reorder point? Answer: 5 weeks * 200 units / week = 1000 units + 300 (safety stock) = 1300 (note that the order quantity is irrelevant for this question) What is the average inventory? Answer: 1500 (order quantity) / 2 + 300 (safety stock) = 1050 1 CPIM Problems First Exam – Basics of Supply Chain Management Problem Three On hand = 400 Forecast: week 1 2 3 4 amount: 100 200 300 200 MPS receipts: 200 150 400 300 What is the projected available balance at the end of weeks 1-4? Answer: week 1 2 3 4 500 450 550 650 Problem Four # of machines = 5 # of shifts = 1 shift length = 30 hours efficiency = 80% utilization = 90% Week 1 2 3 4 Actual output 130 100 140 80 What is the rated capacity? Answer: (30 hours * 5 machines * 1 shift) = 150 * .8 (efficiency) = 120 * .9 (utilization) = 108 hours What is the demonstrated capacity? Answer: 130 + 100 + 140 + 80 / 4 = 113 hours