Supply chain industrial engineering

COLLEGE OF ENGINEERING AND ARCHITECTURE Industrial Engineering Department IEG 413 HW2 Problem 1: Consider the quarterly sales data: a. Determine appropriate seasonal indices for each quarter. b. Use the indices and the time series model in predicting quarter values for year six. Problem 2: The local technology store WiredIn hired you to manage their inventory, which consists of 2 products configurations, type L and type J. Below are the data for the products. The holding cost is 24% of the unit costs. A. Use the economic order quantity model to determine the order size for products Type L and Type J (assuming they are ordered independently). B. Calculate the total relevant cost associated with the EOQ calculated in part (A) (for Type L and Type J) (assuming they are ordered independently). C. Assume that each unit occupies 0.10 cubic foot of space, for which WiredIn figures it costs them $2 per year per cubic foot. Calculate the best order quantity under these circumstances for Type L (assuming no quantity discounts in this part of the question). Problem 3: Skycell, a major European cell phone manufacturer, is making production plans for the coming year. Skycell has worked with its customers (the service providers) to come up with forecasts of monthly requirements (in thousands of phones) as shown in below Table. Manufacturing is primarily an assembly operation, and capacity is governed by the number of people on the production line. The plant operates for 20 days a month, eight hours each day. One person can assemble a phone every 10 minutes. Workers are paid 20 euros per hour and a 50 percent premium for overtime. The plant currently employs 1,250 workers. Component costs for each cell phone total 20 euros. Given the rapid decline in component and finished-product prices, carrying inventory from one month to the next incurs a cost of 3 euros per phone per month. Skycell currently has a nolayoff policy in place. Overtime is limited to a maximum of 20 hours per month per employee. Assume that Skycell has a starting inventory of 50,000 units and wants to end the year with the same level of inventory. A. Assuming no backlogs, no subcontracting, and no new hires, what is the optimum production schedule? What is the annual cost of this schedule? B. Is there any value for management to negotiate an increase of allowed overtime per employee per month from 20 hours to 40? Note: • This is an individual assignment, which means you must submit your OWN work. • Please include the proper covering page of this submission. • Meeting deadlines fall under the code of ethics. So make the timely submissions. Grades will be deducted for late submission. • Copied submissions will earn zero score.