Given:-
where,
Dj is demand for item j
Qj is production rate of item j
hj is inventory holding cost for item j
cj is setup cost for item j
Optimal Cycle length is given by:- |
The ideal time is given by:-
Therefore. Idle time = .48X = 0.595 Months
Total avg cost per unit time is calculated as given below
=
(b) Total avg cost per unit time is
2155
2599
1627
2213
Hence, Machine 3 will do better as avg. cost per unit time is lower for machine 3.
2. Consider two identical machines in parallel. Four items have to be pro- duced items 2...
Q4: 3 marks A manufacturer has three machines I, Il and Il installed in his factory. Machines I and Il are capable of being operated for at most 12 hours whereas machine III must be operated for at least 5 hours a day. She produces only two items M and N each requiring the use of all the three machines. The number of hours required for producing 1 unit of each of M and N on the three machines are...
Exercise 2 A firm is considering which of two machines to install to reduce costs. Both machines have useful life of 5 years and no salvage value. Machine A costs 820.5 QAR and can be expected to result in 150 QAR savings first year increasing by 50 annually. Machine B costs 1,389 QAR and will provide savings of 300 QAR the first year increasing 50 QAR annually, making the second-year savings 350 QAR, the third-year savings 400 QAR and so...
For questions 26-75, choose the most appropriate choice 26. In the A-B-C classification system, items represent 50%-60% of all items but only 10%-15% of the total value? A. A items B. B items C. C items D. A items plus B items E. B items plus C items 27. If no variations in demand during the item's lead time exist and no safety stock is needed, then the ROP will equal to: A. the EOC B. expected demand during lead...
Exercise 2 Linear Programming 1. The Scrod Manufacturing Co. produces two key items – special-purpose Widgets (W) and more generally useful Frami (F). Management wishes to determine that mix of W & F which will maximize total Profits (P). Data W F Unit profit contributions $ 30 $ 20 Demand estimates (unit/week) 250 500 Average processing rates – each product requires processing on both machines (units/hour) Machine #1 2 4 Machine #2 ...
1. In the fixed order quantity inventory system, increasing the target cycle level (CSL) will have the following effect on the reorder point (ROP): a. The ROP will decrease. b. The ROP will stay the same. c. The ROP will increase. d. The question cannot be answered without the numerical information. 2. In the fixed order quantity inventory system, increasing the target cycle service level (CSL) will have the following effect on the optimal order quantity (i.e., the EOQ): a....
LeBron Corporation manufactures two products, XX and YY. These products use the same set of machines. Some unanticipated repairs have led to a sharp reduction in available machine time for October 2016. A maximum of 5,100 machine hours is available and LeBron can potentially sell as many as 1,500 units of XX and 1,500 units of YY this month. Other relevant details are provided below: XX YY Selling price per unit $15.00 $20.00 Variable costs per unit 9.00 15.00 Amount of machine time needed per unit 3 2 The contribution...
5. (a) 4points Figure 2 below shows the annual average radiation budget as a function of latitude. Estimate the latitude Lc where the net radiation crosses over from positive to negative in the Northern Hemisphere. Also estimate the value of the net radiation at the North Pole. Use the two pieces of information to find the equation of a straight line that approximately describes the net radiation (in WIm2) as a function of latitude L between 10 N and the...
Case Problem 2 - PRODUCTION STRATEGYBetter Fitness, Inc. (BFI), manufactures exercise equipment at its plant in Freeport, Long Island. It recently designed two universal weight machines for the home exercise market. Both machines use BFI-patented technology that provides the user with an extremely wide range of motion capability for each type of exercise performed. Until now, such capabilities have been available only on expensive weight machines used primarily by physical therapist.At a recent trade show, demonstration of the machines resulted...
1. Consider the two processes shown below. Which one will have on average the higher total production outcome (i.e., total number of products produced in a given time period)? Process A Process B On average, they will have the same total production outcome. 2. What happens in Process B above if the buffer size increases from 2 to 10? Throughput time increases Throughput time decreases Starving increases Throughput rate decreases Nothing changes 3. Chef Chati works at the kitchen of...
Case Problem 2 PRODUCTION STRATEGY Better Fitness, Inc. (BFI), manufactures exercise equipment at its plant in Freeport, Long Island. It recently designed two universal weight machines for the home exercise market. Both machines use BFI-patented technology that provides the user with an extremely wide range of motion capability for each type of exercise performed. Until now, such capabili- ties have been available only on expensive weight machines used primarily by physical therapists. At a recent trade show, demonstrations of the...