An order for 200 of a product is processed on operation A and operation B. The setup time on A is 100 minutes, and the run time per piece is 18 minutes. The setup time on B is 60 minutes, and the run time is 12 minutes per piece. It takes 30 minutes to move a lot between A and B. Since this is a rush order, it is given top priority (president’s edict) and is run as soon as it arrives at either workstation. It is decided to overlap the two operations and to split the lot of 100 into two lots of 100 and 20. When the first lot is finished on operation A, it is moved to operation B where it is set up and run. Meanwhile, operation A completes the balance of the 100 units (40) and sends the units over to operation B. These 60 units should arrive as operation B is completing the first batch of 60; thus, operation B can continue without interruption until all 200 are completed. Complete the operation setup and describe if there are any flaws?
2) 1) What is break-even analysis?
a) What are the advantages and disadvantages of using it to calculate break-even points?
b) What could be the likely sources of errors in break-even analysis?
2) 1) Break even analysis is a techniques used by production management and management accountants. It is a financial tool that helps us to to understand that at what stage the company or business or an new product or service becomes profitable. Basically it helps us to determine the number of product or services to be sold to cover the costs incurred. Break even is a stage where the company or the business is not making any profit or loss but it is able to cover all its costs.\
Break even analysis is important to study the relationship between the variable costs, fixed costs and revenue. A company with low fixed cost will have a low break even point. For example a company having fixed cast equal to $0, will have its break even at the sale of its first product.
a) Advantage of Break-Even analysis
Disadvantages of Break-Even analysis
c) Sources of errors in break even analysis are:
An order for 200 of a product is processed on operation A and operation B. The...
An order for 400 of a product is processed on operation A and operation B. The setup time on A is 100 minutes, and the run time per piece is 18 minutes. The setup time on B is 60 minutes, and the run time is 12 minutes per piece. It takes 30 minutes to move a lot between A and B. Since this is a rush order, it is given top priority (president’s edict) and is run as soon as...
An order for 160 of a product is processed on work centers A and B. The setup time on A is 30 minutes, and run time is ten minutes per piece. The setup time on B is 40 minutes, and the run time is six minutes per piece. The move time between A and B is ten minutes. There is no queue at either workstation Calculate the total manufacturing lead time for the order Select one: O O O O...
Consider the following Product Structure De Dom Nuct Structure Data Demand Data, Routing and sembles the products A and B Product Structure Data Complete the following tables in order to determine the capacity requirements by using Capacity Bills method. (30 points) Routing and Standard Data Standard Lot Standard Operation Center Work Setup Product Setup Hours Standard Product Hours per unit Total Hours per unit Hours per unit Tofi of 1003 1003 100 010 lof 2002 3002 23001 0,35 0,45 0.30...
Help with question b. please!
The manager at Ormonde Inc. collected the value stream mapping data from the plant's most problematic manufacturing cell that fabricates parts for washing machines. This data is shown in Table 1. Using this data, calculate the current state performance of the cell and answer the following questions. Click the icon to view Table 1. a. What is the cell's current inventory level? The cell's current inventory level is 2050 parts. (Enter your response as a...
3. Consider the followine Product Structure Data, Demand Data. Routing and Standard data for a company that assembles two products, A and B. Product Structure Data F (3 required 3 requiredil Complete the following tables in order to determine the capacity requirements by using Capacity Bills method. (30 points) Routine and Standard Data Total Standard Setup Hours per unit Operation Hours Sizes per unit с End Lot Work Standard Standard Product Center Setup Production Hours Hours per unit 501 of...
3. Consider the following Product Structure Data, Demand Data, Routing and Standard data for a company that assembles two products, A and B. Product Structure Data | A B E (2 required) D Ε . (2 required) F (3 required) 3 required) Complete the following tables in order to determine the capacity requirements by using Capacity Bills method. (30 points) Routing and Standard Data End Product Lot Sizes Operation Work Center Standard Setup Hours Standard Production Hours per unit Standard...
One unit of A is made of two units of B and one unit of C. B is made of three units of D and one unit of F. C is composed of three units of B, one unit of D, and four units of E. D is made of one unit of E. Item C has a lead time of one week; Items A, B, E, and F have two-week lead times; and Item D has a lead time...
One unit of A is made of two units of B and one unit of C. B is made of three units of D and one unit of F. C is composed of three units of B, one unit of D, and four units of E. D is made of one unit of E. Item C has a lead time of one week; Items A, B, E, and F have two-week lead times; and Item D has a lead time...
l. Baxter's Books is considering an order for the latest thriller from author Jimmy Peterson. The store manager assumes that demand will be 50, 100, 150, or 200 copies next month and needs to decide whether to order 50, 100, 150, or 200 copies for that period. Each book will cost Baxter's $20 and can be sold for $30 Baxter will be able to send any unsold books back to the publisher for a refund of $5 each. According to...
1. Basic EOQ Question: The inventory manager of ABC, Ltd., wants to order flour for its bakery in a cost effective manner. The bakery uses an average of 12,000 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $40 per order. Annual carrying costs are $37.50 per bag. REQUIRED: A. Determine the economic order quanity. B. What is the average number of bags on hand? C How many orders will there be per...