Economic Order Quantity

Task

Students are required to develop an individual report addressing the specific tasks set out in the guideline below.

Task briefing:

Exercise 1: Economic Order Quantity. (35 points)

One of the Toyota plants must decide how many of a particular type to order for manufacturing automobiles.

The company plans to produce 300,000 cars in the next year. All cars planned for production use the same headlights (2 units per car); therefore, demand

for the headlights for the next year is known to be 600,000 units. The purchasing agent wants to know how many headlights to buy at one time. Historically,

headlights have been received half a day (lead time) after they were ordered. It costs € 50 to order lights, and the holding-cost fraction used by the auto

company is 22 % per year. The headlights cost € 25 each.

1) Compute the Economic Order Quantity. 2) What is the number of orders per year? 3) What is the frequency of orders? Assume the company works 365 days a year. 4) What is the reorder point? 5) The company works with a Safety Stock of 0.75 days. What is the level of this stock? 6) What is the Average Stock? 7) What is the total Holding Cost? 8) What is the total Ordering Cost? 9) What is the total Cost of Stock Management? 10) Draw the evolution of stock in time (the stock chart).

Material Requirement Planning (MRP). (35 points)

Exercise 3: Understand quality management and efficiency control and how to measure. (30 points)

3.1) “Quality begins with the design of a product in accordance with the customer specification further it involved the established” Discuss why and

give examples.

3.2) Why is necessary Inspection in production?

100% inspection or sampling inspection. When do we use each and what are the reasons for it?

3.3) Why do we define tools for measuring and controlling quality. Give the list of basic tools in Quality Management, explain, and give examples.

3.4) What are the most usual “wastes” in a production system? How Lean Management can reduce or eliminate these wastes and improve the efficiency

in a manufacturing process?

Students are required to use the Harvard Referencing System. The report needs to be uploaded onto Turnitin on Moodle. The assignment hand-in will be created by the course tutor.

Formalities:

• Word document.

• Wordcount: 2500 words.

• Cover, Table of Contents, References and Appendix are excluded of the total wordcount.

• Font: Arial 12,5 pts.

• Text alignment: Justified.

• The in-text References and the Bibliography have to be in Harvard’s citation style.

Submission:

• Week 12: Via Moodle (Turnitin).

• Deadline: 8th January 2023 at 23:59 CEST.

Weight: This task is a 60% of your total grade for this subject.

It assesses the following learning outcomes.

On successful completion of this course, students will be able to:

1. Understand the production management within operations management.

2. Evaluate how to elaborate a master production schedule (MRS) and material requirement planning (MRP).

3. Understand quality control components and measures.

4. Understand production in the global setting.

Rubrics.

Exceptional 90-100 Good 80-89 Fair 70-79 Marginal fail 60-69

Knowledge & Understanding

(20%)

Student demonstrates excellent understanding of key concepts and uses vocabulary in an entirely appropriate manner.

Student demonstrates good understanding of the task and mentions some relevant concepts and demonstrates use of the relevant vocabulary.

Student understands the task and provides minimum theory and/or some use of vocabulary.

Student understands the task and attempts to answer the question but does not mention key concepts or uses minimum amount of relevant vocabulary.

Application (30%) Student applies fully relevant knowledge from the topics delivered in class.

Student applies mostly relevant knowledge from the topics delivered in class.

Student applies some relevant knowledge from the topics delivered in class. Misunderstanding may be evident.

Student applies little relevant knowledge from the topics delivered in class. Misunderstands are evident.

Critical Thinking (30%)

Student critically assesses in excellent ways, drawing outstanding conclusions from relevant authors.

Student critically assesses in good ways, drawing conclusions from relevant authors and references.

Student provides some insights but stays on the surface of the topic. References may not be relevant.

Student makes little or none critical thinking insights, does not quote appropriate authors, and does not provide valid sources.

Communication (20%)

Student communicates their ideas extremely clearly and concisely, respecting word count, grammar and spellcheck

Student communicates their ideas clearly and concisely, respecting word count, grammar and spellcheck

Student communicates their ideas with some clarity and concision. It may be slightly over or under the wordcount limit. Some misspelling errors may be evident.

Student communicates their ideas in a somewhat unclear and unconcise way. Does not reach or does exceed wordcount excessively and misspelling errors are evident.