Question

Again Agame Inventory System

The Again Agame Company produces a game with plastic injection molded parts (along with many other game parts). They receive the demand orders for their shop for the following week and then set up the plastic molding machine to make the parts.

• The average demand is 20 units per week,
• Each time they set up the machine (i.e., order parts), they incur a cost of $9,
• If they do not have enough parts on hand to meet demand during the week, it costs them $1/unit for each missed sale,
• If they have to carry parts over until the next week, it costs $.10/unit/week.

Note:

Friday Night Inventory = Monday morning – demand during that week (if negative, you have a shortage so inventory = 0 and calculate your shortage cost)

Scenario 1:

You will be provided with your order size and will reorder when your quantity reaches 20 (or below) on Monday. Start with your team’s order size in inventory.

The company will produce according to average demand. Each week they make exactly what will be required on average: 20.

What are your Setup, Inventory, stock-out and overall costs at the end of the game?

Scenario 2:

Chose your order size and a reorder point (trigger point). Keep a consistent policy for the whole game.

What are your Setup, Inventory, Shortage, and overall costs at the end of the game?

Answer 1

Conetns in the problem:-

gain Agame Inventory System The Again Agame Company produces a game with plastic injection molded parts (along with many other game parts). They receive the demand orders for their shop for the following week and then set up the plastic molding machine to make the parts.

• The average demand is 20 units per week,
• Each time they set up the machine (i.e., order parts), they incur a cost of $9,
• If they do not have enough parts on hand to meet demand during the week, it costs them $1/unit for each missed sale,
• If they have to carry parts over until the next week, it costs $.10/unit/week.

Note:

Friday Night Inventory = Monday morning – demand during that week (if negative, you have a shortage so inventory = 0 and calculate your shortage cost)

- The average demand 20 unit / week for set up machine Cost of $9. i r do not have enough parts I cost $1 anst If they have to carry parts until the heat week $.10 unit week The set up, Inverdoy, stock out and overall cost Demand is 20 unit /week. If its completed within time, reorder will come cost for 20 unit = unit x cost / unit per week 20x 10 = 200 $ cost of anit determines in different & Audion. for order parts = 20x9 = 1808 If not eaugh Puzb = 20x1= 20$. end of week = 2oxlo= 2008. So cost is denotos is different at different stuctions.