Question

Question 7 (4 points) Plainwell Polymers is going to producing the main dashboard structure for a new car design. The dashboard will be produced in three colors with expected daily demand as follows: Black: 415 units/day Grey: 115 units/day Tan: 180 units/day The injection-molding machine can produce a total of 950 parts per day running 24 hours per day. It costs Plainwell $1,100 to set up each color for producition and the daily holding cost for each part is $0.04. What is the length of the lowest cost cyclic schedule (ignoring setup time constraints) in days? Your Answer: Answer

Answer 1

Black	=	415	units per day
Grey	=	115	units per day
Tan	=	180	units per day
Total	=	710	units per day
Annual Demand	=	710 units per day X 365 days
	=	2,59,150	units
Production capacity	=	950	units per day
Set up cost	=	$      1,100
Carrying Cost	=	$0.04 X 365 days
	=	$      14.60
Economic production quantity	=	SQRT((2 X Set up cost X Annual demand) / Carrying Cost X (1 - Demand/Production))
	=	SQRT((2 X 1100 X 259150) / $14.60 X (1 - 710/950))
	=	12432.74	units
Length of Lowest cost cylic schedule	=	Economic production quantity / Production
	=	12432.74 / 950
	=	13.09	days
or	=	13	days (Rounded off)