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FINAL ASSIGNMENT OF ERP COURSES 2024

The document outlines a final assignment for an ERP course focusing on transportation and inventory problems faced by two managers. It details the tasks assigned to temporary employees for a sales conference and the optimization of costs, as well as the inventory management challenges of a hardware store owner regarding hammers. The assignment requires the submission of various files including QM, Excel, and PDF with calculations and screenshots.

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votrungtuan0211
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4 views2 pages

FINAL ASSIGNMENT OF ERP COURSES 2024

The document outlines a final assignment for an ERP course focusing on transportation and inventory problems faced by two managers. It details the tasks assigned to temporary employees for a sales conference and the optimization of costs, as well as the inventory management challenges of a hardware store owner regarding hammers. The assignment requires the submission of various files including QM, Excel, and PDF with calculations and screenshots.

Uploaded by

votrungtuan0211
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FINAL ASSIGNMENT OF ERP COURSE

1. Transportation Problems:
The marketing manager of the ERP Company will be holding the company’s annual sales
conference soon for sales regional managers and personnel. To assist in the administration of the
conference, he is hiring four temporary employees (Ann, Ian, Joan, and Sean), where each will
handle one of the following four tasks:
1. Word processing of written presentations.
2. Computer graphics for both oral and written presentations.
3. Preparation of conference packets, including copying and organizing written materials.
4. Handling of advance and on-site registrations for the conference.
He now needs to decide which person to assign to each task.
Although each temporary employee has at least the minimal background necessary to perform
any of the four tasks, they differ considerably in how efficiently they can handle the different
types of work. Table below shows how many hours each would need for each task. The
rightmost column gives the hourly wage based on the background of each employee.
Find the optimal solution for this problem and help that manager out before he lost his mind.
Also regarding optimizing the cost, can you also show to the manager how to optimize the cost
for this scenario? (The answer is based on your logic)

- Write down what is supply, what is demand, what is the objective.


- Detail supply, demain, objective by algebra model.
- Submit a QM file, an Excel file, a PDF file with screenshot from QM and SOLVER.
2. Inventory Problems:
Kristen, the owner and manager of the Dick’s Hardware Store, is reassessing his inventory policy
for hammers. He sells an average of 60 hammers per month, so he has been placing an order
to purchase 50 hammers from a wholesaler at a cost of $20 per hammer at the end of each
month. However, Kris does all the ordering for the store himself and finds that this is taking a
great deal of his time. He estimates that the value of his time spent in placing each order for
hammers is $75.
a. What would the unit holding cost for hammers need to be for Kris' current inventory policy to
be optimal according to the basic EOQ model? What is this unit holding cost as a percentage of
the unit acquisition cost?
b. What is the optimal order quantity if the unit holding cost actually is 20 percent of the unit
acquisition cost? What is the corresponding value of TVC? What is TVC for the current
inventory policy?
c. If the wholesaler typically delivers an order of hammers in 5 working days (out of 25 working
days in an average month), what should the reorder point be (according to the basic EOQ
model)?
d. Kris doesn't like to incur inventory shortages of important items. Therefore, he has decided to
add an additional of safety stock of 5 hammers to safeguard against late deliveries and larger-
than-usual sales. What is his new reorder point? How much does this safety stock add to TVC ?
e. Kris would like to make an extra order for backorder customers, since there are often more
demand than what he can hold in his current inventory. To work on this, he calculated the
penalty that occur when the customer don’t get what they wanted – often they will go to other
store to buy for much higher price because they have a choice. The penalty cost is $30 per
hammer missing. What is the new EOQ and the amount of planned shortage for Kris ?
When working on this exercise, you should:
- Write down the cost components of this Inventory Models, IE: what are D, h, K, .... in
this excercise.
- Submit your screenshot in the same PDF file as previous exercise, and your calculation in
the same Excel file, in the other Sheet of the previous Excel file)

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