exercise forms, the return envelope, the FAX Cover Sheet, or the e-mail. It will
help us to more ... Describe the rule of thumb for value vs. usage in ABC analysis.
SKILL DEVELOPMENT EXERCISES UNIT SEVEN Complete the exercises on the forms provided and send them by mail, fax, or email for helpful review and comment to:
Analysis Center The MGI Management Institute 244 Westchester Avenue, Suite 100 White Plains, NY 10604 Fax: (914) 428-0773
e-mail:
[email protected]
Please remember to include your student number and course identifier on the exercise forms, the return envelope, the FAX Cover Sheet, or the e-mail. It will help us to more quickly and accurately route your exercises to the appropriate instructor. You’ll find the student number and the course identifier on the front page of this course manual.
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SKILL DEVELOPMENT EXERCISE 7-1 Describe the rule of thumb for value vs. usage in ABC analysis.
SKILL DEVELOPMENT EXERCISE 7-2 Use the table at the top of the next page to analyze the following data to produce an ABC classification based on annual dollar usage. Item Number 1 2 3 4 5 6 7 8 9 10 Total
Annual Dollar Usage $13,189 156,127 344 8,493 42,749 5,589 19,562 241,873 1,962 10,112 $500,000
Name _____________________________________ Student No. 56-_________ Address __________________________________________________________
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SKILL DEVELOPMENT EXERCISE 7-2 Cont. Item Number
Annual $ Usage
Cumulative $ Usage
Cumulative % $ Usage
Cumulative % of Items
Class
SKILL DEVELOPMENT EXERCISE 7-3 A company ships a product to a market 500 miles away at a cost of $4 per mile. The company normally ships a truckload of 1,000 units at a time. A. What is the line-haul cost per unit?
B. If the company shipped the units unassembled, they could ship 1,800 units at a time. What is the line-haul cost now?
Name _____________________________________ Student No. 56-_________ Address __________________________________________________________
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SKILL DEVELOPMENT EXERCISE 7-4 Describe the two basic types of stock location systems.
SKILL DEVELOPMENT EXERCISE 7-5 Describe the three types of order picking and assembly systems.
Name _____________________________________ Student No. 56-_________ Address __________________________________________________________
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SKILL DEVELOPMENT EXERCISE 7-6 Given the following planned order releases from distribution centers A and B, calculate the planned order release from Central Supply. The order quantity for Central Supply is 500 units. Week DC “A” planned order release
1
2
3
100
100
100
200
100
2
3
DC “B” planned order release Central supply—Lead time: 2 weeks Order quantity: 500 units Week
1
Forecast Scheduled receipts Projected available
500
Planned order release
SKILL DEVELOPMENT EXERCISE 7-7 List the advantages and disadvantages of rail transportation.
Name _____________________________________ Student No. 56-_________ Address __________________________________________________________
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