Topics: Wheat Pages: 6 (670 words) Published: April 24, 2015
﻿Exercise 1 :
Given the following information about Xyz Company that produce children cereal A and B complete the tables below: Safety stock =200
The company will produce 50 packs per minute.
The total of working hours in a day is 8 hours.
Each box contains 100 packs.

1- Xyz sale and operation plan from Jan to April :

Inventory:
1- 4752-4752=0+200=200
2-4788-4788=0+200=200
3-5086-5086=0+200=200
4-5420-5409=11+200=211
Capacity:
(50x60x8)/100=240
1-240x22=5280
2- 240x21=5040
3-240x22=5280
4-240x23=5520

Utilization:
1- (4752/5280)x100=90%
2- (4788/5040)x100= 95%
3- (5060/5280)x100=96.32%
4- (5420/5520)x100=98.18%
Cereal A Boxes :
1-(4752x40)/100=1901
2-(4788x40)/100=1915
3-(5086x40)/100=2034
4-(5420x40)/100=2168
Cereal B Boxes :
1-(4752x60)/100=2851
2-(4788x60)/100=2873
3-(5086x60)/100=3052
4-(5420x60)/100=3252

2- Xyz Production plan for the month of March:
Demand Management
Week 1
3/ 2-3/5
Week 2
3/8-3/12
Week 3
3/15-3/19
Week 4
3/22 - 3/26
Week 5

3/29-3/31
4/1-4/2
Monthly Demand
Cereal A
2034
2034
2034
2034
2034
2168

Cereal B
3052
3052
3052
3052
3052
3252
Working days in a week
4
5
4
5
3
2
Working days in a month
22
22
22
22
22
23
MPS Weekly Demand
Cereal A
Boxes
370
462
370
462
466

Cereal B
Boxes
555
694
555
694
699

MPS:
Cereal A Boxes :
1- (2034X4)/22=370
2- (2034X5)/22=462
3- (2034X4)/22=370
4-(2034X5)/22=462
5-(2034X3)/22+(2168X2)/23=465
Cereal B Boxes :
1-(3052X4)/22=555
2-(3052X5)/22=694
3-(3052X4)/22=555
4-(3052X5)/22=694
5-(3052X3)/22 +(3252X2)/23=699

Exercise 2 :
Given:
Cereal A will need 200 lb. of wheat, and Cereal B will need 300 lb. of wheat. •Each box weighs 60 lbs.
The batches should weigh 400 lb. each.
Complete the following table of MRP record for wheat in xyz cereals A and B: Wheat lead time = 2 weeks
Week 1
Week 2
Week 3
Week 4
Week5
MPS
Boxes
Cereal A
370
462
370
462
466

Cereal B
555
694
555
694
699
MPS
Batches 400 lb.
Cereal A
56
69
56
69
70

Cereal B
83
104
83
104
105
Gross Requirement lb.
36100
45000
36100
45000
45500

MPS Batches 400 lb:
Cereal A:
1- (370x60)/400=56
2-(462x60)/400=69
3-(370x60)/400=56
4-(462x60)/400=69
5-(465x60)/400=70
Cereal B:
1-(555x60)/400=83
2-(694x60)/400=104
3-(555x60)/400=83
4-(694x60)/400=104
5-(699x60)/400=105

Gross Requirement :
1-56x200+83x300=36100
2-69x200+104x300=45000
3-56x200+83x300=36100
4-69x200+104x300=45000
5-70x200+105x300=45500

Exercise 3:
a) Complete the following table of cereal A cost analysis:
b) Is \$2 a suitable price for a cereal A box ? why?
Cereal A cost analysis for 5 boxes
Ingredients
Unit of measure
Cereal A
Cost per unit of measure
Direct Material Cost
wheat
Lb.
200
\$0.22
\$44
Corn flour
Lb.
40
\$0.50
\$20
sugar
Lb.
5
\$2
\$10
Natural Flavors
Lb.
4
\$3
\$12
Total Material

\$86
Production of OH
60% of Direct Material

\$51.6
Direct Labor

\$233
Cost of Goods Manufactured

\$370.6
40% of COGM

\$148.24
COGS

\$518.84
COGM per Box

\$74.12
COGS per Box

\$103.77

Total Material:44+20+10+12=86
Production of OH 60% of Direct Material:( 86x60)/100=51.6
Cost of Goods Manufactured: 86+52+233=370.6
Sales and Administrative 40% of COGM:(370.6x40)/100=148.24
COGS:370.6+148.24=518.84
COGM per Box: 370.6/5=74.12
COGS per Box:518.84/5=103.77
Cost per pack : 103.77/100=1.04

b)Is \$2 a suitable price for a cereal A pack? Why?
Yes, it’s suitable, because it is more than the cost per pack : 2 > 1.04.