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IELM 2010

,

Fall 201

6

Assignment

6

(Due at

5

P

M

,

Friday

,

Dec 9

)

Question

1

Supply Chain Management

Answer the following questions related to

the supply chain management game

.

(a)

What is the bullwhip effect?

(b)

If the lead time changes from 2 weeks

to 3 weeks, wo

uld the order quantity

fluctuation becomes larger or smaller.

(c)

Propose two ways to improve the bullwhip effect.

Question

2

CPM Method

The billing department of a department store prepares monthly inventory reports for use

by the store’s reports for use

by the store’s purchasing agents. Given the following

information, use the critical path method to determine:

(a)

How long the total process will take.

(b)

Which jobs can be delayed without delaying the early start of any subsequent

activity

.

Job Description

Prec

eding

Activities

Hours

A

Start

-

0

B

Get computer printouts of customer purchases

A

10

C

Get stock records for the month

A

20

D

Reconcile purchase printouts and stock records

B, C

30

E

Total stock records by department

B, C

20

F

Determine reorder quantiti

es for coming period

E

40

G

Prepare stock reports for purchasing agents

D, F

20

H

Finish

G

0

Question

3

Time Cost Model

Here are the precedence requirements, normal and crash activity times, and normal and

crash costs for a construction project:

Preceding

Activities

Require Time

(Week)

Cost

Normal

Crash

Normal

Crash

A

-

4

2

$10,000

$11,000

B

A

3

2

6,000

9,000

C

A

2

1

4,000

6,000

D

B

5

3

14,000

18,000

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E

B, C

1

1

9,000

9,000

F

C

3

2

7,000

8,000

G

E, F

6

4

13,000

25,000

H

D, E

4,

1

11,000

18,000

I

H, G

6

5

20,000

29,000

(a)

What are the critical path and the estimated completion time?

(b)

To shorten the project by

4

weeks, which tasks would be shortened and what would

the final total project cost be?