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Homework answers / question archive / Azusa Pacific University - BUSI 514 Week 6: Homework 3 1)Adam Munson Manufacturing, in Gainesville, Florida, wants to arrange its four work centers so as to minimize interdepartmental parts handling costs

Azusa Pacific University - BUSI 514 Week 6: Homework 3 1)Adam Munson Manufacturing, in Gainesville, Florida, wants to arrange its four work centers so as to minimize interdepartmental parts handling costs

Business

Azusa Pacific University - BUSI 514

Week 6: Homework 3

1)Adam Munson Manufacturing, in Gainesville, Florida, wants to arrange its four work centers so as to minimize interdepartmental parts handling costs. The flows and existing facility layout are shown in Figure 9.19. For example, to move a part from Work Center A to Work Center C is a 60-foot movement distance. It is 90 feet from A to D.

 

Parts Moved Between Work Centers

 

 

 

A

 

B

 

C

 

D

 

A

 

 

450

 

550

 

50

 

B

 

350

 

 

200

 

0

 

C

 

0

 

0

 

 

750

 

D

 

0

 

0

 

0

 

 

Existing Layout

 

A

B

C

D

|———30’———|———30’———|———30’———|

 

  1. What is the “load x distance,” or “movement cost,” of the layout shown?

 

 

  1. Provide an improved layout and compute its movement cost.

 

B

A

C

D

|———30’———|———30’———|———30’———|

 

 

2.  After an extensive product analysis using group technology, Leon Bazil has identified a product he believes should be pulled out of his process facility and handled in a work cell. Leon has identified the following operations as necessary for the work cell. The customer expects delivery of 250 units per day, and the workday is 420 minutes.

  1. What is the takt take?

 

 

  1. How many employees should be cross-trained for the cell?

 

 

  1. Which operations may warrant special consideration?

 

 

 

 

3. Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $15,000 (as shown in the statement below)—inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Kamal would like to improve the profit line to $25,000 so he can obtain the bank’s approval for the loan.

 

 

 

% OF SALES

Sales

$250,000

100%

Cost of supply chain

purchases

175,000

70%

Other production costs

30,000

12%

Fixed costs

30,000

12%

Profit

15,000

6%

 

  1. What percentage improvement is needed in a supply chain strategy for profit to improve to

$25,000? What is the cost of material with a $25,000 profit? Total cost = $175,000 + 30,000 + 30,000 = $235,000

 

  1. What percentage improvement is needed in a sales strategy for profit to improve to $25,000? What must sales be for profit to improve to $25,000? (Hint: See Example 1.)

 

 

4.  William Beville’s computer training school, in Richmond, stocks workbooks with the following characteristics:

 

Demand D = 19,500 units/year

 

Ordering cost S = $25/order Holding cost H = $4/unit/year

 

  1. Calculate the EOQ for the workbooks.

 

  1. What are the annual holding costs for the workbooks?

 

 

  1. What are the annual ordering costs?

 

 

 

5. Joe Henry’s machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets:

 

Annual demand:

2,500

Holding cost per bracket per year:

$1.50

Order cost per order:

$18.75

Lead time:

2 days

Working days per year:

250

 

  1. Given the above information, what would be the economic order quantity (EOQ)?

 

  1. Given the EOQ, what would be the average inventory? What would be the annual inventory holding cost?

 

  1. Given the EOQ, how many orders would be made each year? What would be the annual order cost?

 

 

  1. Given the EOQ, what is the total annual cost of managing the inventory?

 

  1. What is the time between orders?

 

 

  1. What is the reorder point (ROP)?

 

 

 

 

  1. How big should the sample be for a statistically accurate standard (at, say, the 99.73% confidence level and accuracy of ±5%)?

 

Observations

xi

xx

(xi - xx)

(xi - xx)2

1

2.05

1.90

0.15

0.0225

2

1.92

1.90

0.02

0.0004

3

2.01

1.90

0.11

0.0121

4

1.89

1.90

-0.01

0.0001

5

1.77

1.90

-0.13

0.0169

6

1.80

1.90

-0.1

0.01

7

1.86

1.90

-0.04

0.0016

8

1.83

1.90

-0.07

0.0049

9

1.93

1.90

0.03

0.0009

10

1.96

1.90

0.06

0.0036

11

1.95

1.90

0.05

0.0025

12

2.05

1.90

0.15

0.0225

13

1.79

1.90

-0.11

0.0121

14

1.82

1.90

-0.08

0.0064

15

1.85

1.90

-0.05

0.0025

16

1.85

1.90

-0.05

0.0025

17

1.99

1.90

0.09

0.0081

Σ(xi - xx)2

0.1296

 

 

  1. Is the sample size adequate?

 

 

  1. How many units should be produced at this workstation per day?

 

 

 

 

  1. What is the cost per unit for this task in direct labor cost?

 

 

 

 

 

  1. How does this supply chain differ from that in a manufacturing firm?

 

 

  1. What are the constraints on making decisions based on economics alone at Arnold Palmer Hospital?

 

 

 

  1. What role do doctors and nurses play in supply chain decisions in a hospital? How is this participation handled at Arnold Palmer Hospital?

 

 

  1. Doctor Smith just returned from the Annual Physician’s Orthopedic Conference, where she saw a new hip joint replacement demonstrated. She decides she wants to start using the replacement joint at Arnold Palmer Hospital. What process will Dr. Smith have to go through at the hospital to introduce this new product into the supply chain for future surgical use?

 

 

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