Errata Introduction to Materials Management, 5th edition J.R. Tony Arnold & Stephen N.

Chapman Chapter 1, Introduction to Materials Management Page 17 Problem 1.2 - Answer: Sales would have to increase 25%. Problem 1.3 Part b. should read, If the work-in-process could be reduced to 7 weeks . . . . Page 18 Problem 1.5 should begin, Amalgamated Fenderdenters sales are $10 million. Chapter 2, Production Planning System Page 43 Problem 2.1 should read, If the opening inventory is 400 units, demand is 900 units, and production is 800 units, . . . ? Problem 2.2 Answer: Average daily production = 8.3 units Problem 2.4 Answer: Month 1: 157.7, Month 2: 166, Month 3: 174.3 Page 44 Problem 2.8 In the table, the Forecast Demand row under Period 1 should read 1300 instead of 1200. Page 45 Problem 2.12 In the table, the Planned Inventory row amount should read 600, not 500. Page 46 Problem 2.14 should read . . . , and production . . . . (not productions). Problem 2.15 In the table, the row labeled Period should be changed to Week. Also, the third line of the Answer should read, Backlog at end of week 1 = 750 units. Problem 2.16 In the table, the row labeled Period should be changed to Week. Also, the Projected Backlog amount in the table should be 1100, not 1000. Page 47 Problem 2.18 The last sentence before the table should read, Why is it not possible to exactly reach the ending inventory target? Chapter 3, Master Scheduling Page 51 After the heading Example Problem, the second sentence should read, It bases its production planning on weeks. Page 55 In the Example Problem, the third sentence should begin, The following . . . . Page 61 In the second paragraph, the first sentence should read, Continuing with the example problem on page 53 . . . . Page 62 In the first paragraph, the last sentence should read, . . . in which changes are not accepted due to . . . . Page 63 In the paragraph below the Example Problem, the first sentence should read, So far we have considered how to calculate projected available balance and available to promise.

Page 68 The Answer after the second table on this page should read, Scheduled receipts in quarters 2 and 3 and after the third table, Scheduled receipts in quarters 1 and 4. Page 70 Problem 3.6 After the second table on this page, the Answer should read, The total hours required are: week 1, 241; week 2, 257; week 3, 307; week 4, 249; and week 5, 261. Page 71 Problem 3.12 should read, Given the following data, can an order for 20 for delivery in week 4 be accepted? Calculate the ATP using the following table. On hand = 50 units. Page 72 Problem 3.13 In the table, Customer Orders for Week 8 should be 15 (not 50). Page 73 Problem 3.16 -- For Projected Available Balance only, a new column item should be inserted to the left of Period 1, with the value 20. Chapter 4, Material Requirements Planning Page 90 At the bottom of the page under Example Problem, the first sentence should say, Complete the following table. Page 107 Problem 4.4 In the table, the Gross Requirements for Week 1 should be 20 (not 10), and the Projected Available amount should be 40 (not 30). Page 108 Problem 4.5 Add the following sentence to the end of the paragraph at the top of this page: All on-hand balances = 0. Page 109 Problem 4.6 In the table, the Gross Requirements for Week 3 should be 35 (not 40). Also, the first line of the Answer should say: Projected available at the end of week 3 is 20. Page 110 Problem 4.8 The fourth sentence should read, The master production schedule calls for the completion of 50 Hs in week 3 and 80 in week 5. Page 111 Problem 4.10 The third sentence should read, The master production schedule calls for the completion of 100 As in week 5. Page 115 Problem 4.14 Add the following sentence at the end of the current Answer: There is a planned order release of 100 for Part C in week 1 and 140 in week 2. Page 116 Problem 4.15 The third sentence should read, The master production schedule calls for the completion of 100 As in week 4 and 50 in week 5. Chapter 5, Capacity Management Page 140 Problem 5.4 Answer: 492.8 standard hours per week Problem 5.7 The first sentence should read, In an 11-week period, a work center produces 1050 standard hours of work.

Chapter 6, Production Activity Control Page 155 In the table at the top right corner of this page, the Part column should have the following from top to bottom: A, A (not 3), B, Assembly X. The Time column should have this information: 5, 3, 10, 5. Page 173 Problem 6.3 Answer: 18.08% Chapter 7, Purchasing Page 192 In the Example Problem, the first line of the Answer should read: Total cost = $5000 + ($6.50 X 1,000) = $11,500. Also, the fifth line should read: $8.50X = $5,000. Chapter 8, Forecasting Page 212 The second formula on this page should begin with Seasonal index (not Season index). Page 220 The last sentence on the page should read, If MAD is 7.5, calculate the sum. . . . Page 221 At the top of the page, the second line of the Answer should be: Tracking signal = 45 7.5 = 6. Page 224 Problem 8.1 The first sentence should say, Over the past three months, the demand for a product has been 255, 279, and 231. Page 225 Problem 8.2 In the table, figures in the Actual Demand column should read, from top to bottom: 60, 70, 40, 50, 70, and 65, with the column left blank for Month 7. Page 226 Problem 8.4 Answer: Forecast = 123.95 = 124. Page 228 Problem 8.9 should say, If the average demand for the first quarter was 140 . . . . Page 229 Problem 8.12 In the table, Average Demand for September should be 100 (not 110), and for November, 50 (not 60). Page 231 Problem 8.16 Answer: b. Deseasonalized forecast for next month = 106.25; c. Forecast of seasonal demand = 85 Problem 8.17 In the table, the Average Past Demand for February should be 200 (not 150). Problem 8.18 In the table, the Forecast should be 110 for all periods (not 100). Chapter 9, Inventory Fundamentals Page 249 In the Answer at the top of the page, the formula should begin Average daily usage = and the first sentence on this page should say, there are four methods accounting uses to cost inventory: first in first out, last in first out, average cost, and standard cost. Page 252 The first line should say: b., c., and d. (It currently has an extra b in it.)

Page 256 Problem 9.8 In the table, the Forecast Demand for Quarter 4 should be 9000 (not 10,000). Page 257 Problem 9.12 Answer: Gross margin = $700,000 and Net income = $400,000. Problem 9.14 Answer: b. $1,300,000 Page 258 Problem 9.16 Answer: 20 days Chapter 10, Order Quantities Page 262 In the Example Problem, the Answer should begin, Average cycle inventory = (rather than Average inventory). Page 269 The last formula on this page should have a square root symbol over the numerator only in the fraction. Thus, K = (AD)/N. Page 270 The last column in the top table should be K = (AD)/N. In the formula in the middle of this page, K = ((AD))/ N. Page 271 Twice in equations EDQ should be EOQ. Page 275 Problem 10.3 Answer: a. 4,000 units Problem 10.4 Answer for part D (d) Results are not the same. Page 276 Problem 10.8 Answers should read: Item 1, 250 units; Item 2, 150 units; Item 3, 55 units. Page 277 Problem 10.10 The second line of the Answer should read, Average inventory with new lot sizes = $1950.69. Chapter 11, Independent Demand Page 293 In the Example Problem in the middle of the page, sigma for LTI = 15. . . . should read sigma for LTI = 150. . . . Page 296 Figure 11.8 has a slight technical error as the inventory line will always fall short of the target by the amount of demand during the replenishment lead time. Page 305 Problem 11.4 The problem should say, Given the following data, calculate the average demand and the standard deviation. (Please omit the last part of the current sentence: of demand about the average.) Page 306 Problem 11.7 The second line of the Answer should read, Average inventory = 588 units. Page 308 Problem 11.17 Answer: 4 stockouts per year Page 310 Problem 11.20 Answer: Target level = 1000 units; Order quantity = 400 units

Chapter 12, Physical Inventory and Warehouse Management Page 329 Problem 12.6 The first sentence should read, A company wants to store the following seven SKUs . . . . Page 330 Problem 12.7 Answer: A, B, and D are within tolerance. Chapter 13, Physical Distribution Page 360 Problem 13.1 Answer: Rail, $990; truck, $840 Page 361 Problem 13.7 The second sentence should read, Now it ships LTL at an average cost of $28 per unit. Chapter 14, Products and Processes Page 393 Problem 14.3 Answer: d. Total cost = $2700.00; Unit cost = $2.70 Problem 14.4 The fixed cost for Heat treat in-house should be $28,000.00 (not $25,000.00) Page 394 Problem 14.5 Three figures need to be revised, as follows: Bananas are on sale at the Cross Towne store for $ .69 per pound. They normally sell for $ .99 per pound at your corner store. If round trip bus fare costs $2.80 . . . . Problem 14.7 The last line of the Answer should read, v) Unit cost = $1.35. Page 395 Problem 14.8 The problem should read: . . . with the following results: wrong selection 62,000, wrong size 50,000, order canceled 15,000, wrong address 3,000, other 15,000. . . . Also, one row should be added to the table above the row for Total. Chapter 15, Just-In-Time Manufacturing Page 413 Figure 15.9 In the first table, Model C for Week 3 should be 1200 (not 900). Page 442 In the Example Problem, the first sentence should read, The specifications for the weight of a chemical in a compound are 10 .05 grams. Page 444 At the top of the page, the Answer for a. should be .667 (not .067). Chapter 16, Total Quality Management Page 448 Under the heading Reasons for sampling inspection, reason 4 should say, Human error is estimated to be as high as 20% . . . . Page 457 Problem 16.6 The first sentence should say, If, in problem 5, the process . . . . Readings Page 462 Under the Chapter 16 heading, following the Chase entry, the following book should be added to the list: Juran, J. M., and A. B. Godfrey, Jurans Quality Handbook, 5th ed. New York: McGraw-Hill Professional, 1998.