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Homework answers / question archive / Troy University - QM 3345 1)Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas
Troy University - QM 3345
1)Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip:
Setup labor cost $25 per hour Annual holding cost $12 per unit
Daily production 976 units/8 hour day
Annual demand 32,400 (270 days each × daily demand of 120 units) Desired lot size 122 units (one hour of production)
2.
Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of 300 days.
Setup labor cost $60.00 per hour
Annual holding cost $14 per unit
Daily production (8 hours) 880 units/day
Annual demand for steering wheels 31,500 (300 days × daily demand of 105 units)
Desired lot size (2 hours of production) Q = 220 units
3.
Tej Dhakar's company wants to establish kanbans to feed a newly established work cell. The following data have been provided. Note: This is a level production system.
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Daily demand 275 units
Production lead time 2.00 days
Safety stock 1.00 day
Kanban size 50 units
How many kanbans are needed?
4.
Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines.
Determine the size of the kanban for subassemblies and the number of kanbans needed.
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Setup cost $30
Annual holding cost $100 per subassembly
Daily production 30 subassemblies
Annual usage 2,500 (50 weeks × 5 days each × daily usage of 10 subassemblies)
Lead time 14 days
Safety stock 3 days' production
5.
Maggie Moylan Motorcycle Corp. uses kanbans to support its transmission assembly line. Determine the size of the kanban for the mainshaft assembly and the number of kanbans
needed.
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Setup cost $20
Annual holding cost $220 per mainshaft
Daily production 320 mainshafts/day
Annual usage 20,000 (50 weeks × 5 days each × daily usage of 80 mainshafts)
Lead time 2 days
Safety stock 1.00 days' production
6.
Discount-Mart, a major East Coast retailer, wants to determine the economic order quantity for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting Manufacturers, in Atlanta. Annual demand is 2,000 lamps, ordering cost per order is $30, carrying cost per lamp is $12.
7.
Discount-Mart, a major East Coast retailer, wants to determine the economic order quantity for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting Manufacturers, in Atlanta. Annual demand is 2,000 lamps, ordering cost per order is $0.80, carrying cost per lamp is $20. As part of its new JIT program, Discount-Mart has signed a long-term contract with Specialty Lighting and will place orders electronically for its halogen lamps.
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The 5s technique is used on the tarmac at Alaska Airlines to
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