Cru Computer Rental Case Solutions

CRU Computer Rental Case Solutions

Solution 1

TABLE 1: CRU FLOWS | Customer | Receiving | Status 24 | Status 40 | Stored Orders | Orders at Suppliers | Status 41 | Status 42 | Status 20 | | | | | | | | | | | Throughput(Units/Week) | 1000 | 1000 | 1000*.70=700 | 1000*.30+ .15*700= 405 | 405 | 405 | 405 | 405 | 1000 | | | | | | | | | | | Inventory(Units) | 8000= 8*1000 | 500 | 1500 | 1000 | 500 | 405= 405*1 | 500+405 = 905 | 500 | 2000=2*1000 | | | | | | | | | | | Flow Time(Weeks) | 8 | 0.5= 500/1000 | 2.14= 1500/700 | 2.46=1000/405 | 1.23= 500/405 | 1 | 2.23 | 1.23= 500/405 | 2 |

Note:
 Numbers in Black are given
 Numbers in red are calculated by using formula Av. flow time = Inventory/Throughput
 Numbers in Green shows a constant flow in units after status 40 to status 42

Solution 2
Utilization = No. of units on rent / No. of units owned by CRU = Inventory on rent/ Total inventory
No. of units on rent = No. of units rented per week* No of weeks = 1000*8 = 8000
Total Inventory = Sum of no. of inventory units in the following buffers: =SUM(Customer, Receiving, Status 24, Status 40, Status 41 , Status 42 , Status 20) = 14405
Therefore, Utilization = 8000/14405 = .55 or 55 %

Solution 3
Av. time spent by a unit in each buffer can be found in 3rd row of Table 1 and is calculated by using the following formula:
Av. flow time = Inventory/Throughput BUFFER | Inventory | Throughput | Av. Time (WEEKS) | Customer | 8000 | 1000 | 8000/1000= 8 | Receiving | 500 | 1000 | 500/1000= .5 | Status 24 | 1500 | 700 | 1500/700= 2.14 | Status 40 | 1000 | 405 | 1000/405= 2.46 | Stored Orders | 500 | 405 | 500/405= 1.23 | Orders at Suppliers | 405 | 405 | 405/405= 1 | Status 41 | 905 | 405 | 905/405= 2.23 | Status 42 | 500 | 405 | 500/405= 1.23 | Status 20 | 2000 | 1000 | 2000/1000= 2 |

Solution 4
Profit = Revenue- variable Cost – Depreciation
Revenue = No. of units *