EOQ

Question 1

Definition

Answer 1

Determine quantity to order to achieve minimum total inventory cost (holding n ordering)

Question 2

Overview of MRP (Material Requirement Planning)

Answer 2

-What to order
-How much to order
-When to order

Question 3

Benefits of MRP system

Answer 3

1) Faster Response
wins orders and market share

2) Better usage manpower and facilities
increase productivity and ROI

3) Reduced stock levels

Question 4

Effective use

Answer 4

MPS
BOM
Inventory Availability
Purchase Order Outstanding
Lead Time (Time between order placed and delivery)

Question 5

Benefits of ERP

Answer 5

• Integrates supply chain, production and admin functions
• Create real time and common database
• Incorporate the best business process
• Has off-the-shelf software database
• Improve communications and collab between business units

Question 6

Issues ERP

Answer 6

• Costly to acquire and expensive to customize
• Implementation can require significant change to processes within firm
• Might be very complicated , many firms cant adjust to it smoothly

-On going process, possibly never get completed and implemented due to staff to prob.

Question 7

Determining Project Schedule

Answer 7

Perform CPA
Critical Path : Longest Duration path thru the network

Critical path : Determine minimum time in which the project can be done

Critical path : no delay in critical path activeness, otherwise project will be delayed

Critical path : no slack time n delay

Question 8

Project Crashing

Answer 8

Face Delays -> projects behind schedule
Shortening duration of project = project crashing

Need extra cost (manpower ; tools n equipment)