04 Jun Question Homework Assignment #2 DSC 335, Spring 2014
Question
Homework Assignment #2
DSC 335, Spring 2014
1. (Estimating capacity requirement) The Southeast Manufacturing Company is producing two types of products: A and B. Both of these products are produced at the same workstation, called the Automatic Lathe. It works 250 days per year with two 8-hour shifts and desires a 25 percent capacity cushion. Demand forecasts for the next year and other production-related information are provided in the following table:
Product A
Product B
Demand forecast (units/yr)
4,000
12,000
Batch size (units/batch)
80
150
Processing time (hr/unit)
2.5
2.0
Setup time (hr/batch)
18
24
1) What’s the number of automatic lathes required to meet the demand for both products?
2. (Continue from Problem 1.) Suppose the company has 12 automatic lathes, and financial constraints prevent buying new machines for the next year. Consider the following alternatives:
2) The company can increase the batch size of product B to reduce the number of setups. What is the minimum batch size of product B that leads to a capacity requirement of 12 lathes or less?
3) The company can decrease the capacity cushion. At what cushion level the demand can be met with the current capacity of 12 lathes?
3. (Bottleneck analysis and inventory buildup) Wally’s Widget Warehouse accepts customer orders, pick them up from customers’ locations and then pack them. The manager wants to analyze the process and has provided the process flow diagram shown below.
The first step is to take the orders. The order taker accepts order from 7am to 7pm, and stops taking orders after 7pm. If the order taker is busy, an arriving customer is put on hold, and after 7pm all unaccepted customers orders will be lost. The second step is to pick the order from the customer by staff A. In the third step, the order is packaged for shipping by staff B. The capacity rates of the three workers are marked in the above diagram. Wally promises that every order accepted today gets shipped tomorrow. That is, staff A and staff B must finish all orders before they are shut down.
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