You are working for a pharmaceutical company and they have just produced a new wonder drug: Faculty of lifelong learning Assignment, ITC, Ireland

Question 1

You are working for a pharmaceutical company and they have just produced a new wonder drug, Cureitall, which is administered in 4mg doses. The BOM for a dose of Cureitall is as follows:

Complete the MRP records for Cureitall using the following information:

• The MPS has been converted from doses to milligrams to make planning easier-4,250 doses = 17,000 mg.
• As a start the requirements for Compound X are in the ratio of 2:1— 2mg required for each dose — hence to make 17,000 mg of Cureitall then 8,500 mg of Compound X are required.

Question 2

The superComputer is a computer store that sells various computer hardware and software. You have been given the following information regarding a certain laptop:

1. What is the EOQ for the laptop?
2. Calculate annual ordering and holding costs for the laptop (ignoring safety stock). What do you notice and how would this affect your stocking policy?
3. If SuperComputer currently orders 120 laptops at a time, how much more or less would SuperComputer pay in annual holding and ordering costs if they were to order just 12 laptops at a time?
4. What is the reorder point for the laptop and how much of this consists of safety stock?
5. What are the annual holding costs when considering safety stock? How much of this cost is due to the safety stock being held?
6. If SuperComputer wants to reduce their order lead time to one week what would be the new safety stock and how would this affect annual holding costs?

Question 3

Part A

A logistics company has been in business for four years and wants to develop monthly indices. Inventory monthly quantities for these years are as follows:

1. Develop a monthly index.
2. Estimate Year 5 forecasts for April, July, and December if the annual quantity for Year 5 is 1,500,000.

Part B

Bus and underground journeys for the summer months in London are believed to be heavily tied to the number of tourists visiting the city. During the past twelve years, the following data has been collected.

1. Develop a linear regression for the data.
2. What is the expected number of journeys if tourist numbers hit 10,000,000?
3. Explain the predicted number of journeys if there are no tourists.
4. What is the model’s co-efficient of correlation and what is the co-efficient of determination?