a)
To determine: The daily production quantities and sequences.
Introduction:
Lean systems in an organization would have greater impact on the customers and their values. The goal of lean thinking is to improve the productivity of the department and the goal for any lean system is to maximize the customer value.
a)
Explanation of Solution
Given information:
It is given that the month has 20 production days. The monthly requirement of Model A is 5,000 units, Model B is 2,500 units, and Model C is 3,000 units.
Determine the daily production quantities and sequences:
Daily production quantity of Model A:
This can be calculated by multiplying the monthly requirement of Model A and the value of one divided by the monthly production days.
Daily production quantity of Model B:
It can be calculated by multiplying monthly requirement of Model B and the value of one divided by the monthly production days.
Daily production quantity of Model C:
It can be calculated by multiplying monthly requirement of Model C and the value of one divided by the monthly production days.
Hence, the daily production quantity of Model A is 250, Model B is 125, and Model C is 150. Here, the common multiple is 25.
Determine the sequence for Model A:
Determine the sequence for Model B:
Determine the sequence for Model C:
Hence, the sequence is (10) A (5) B (6) C.
Note: The largest common multiplier serves as the number of runs required per day.
b)
To determine: The daily production quantities and sequences.
Introduction:
Lean systems in an organization would have greater impact on the customers and their values. The goal of lean thinking is to improve the productivity of the department and the goal for any lean system is to maximize the customer value.
b)
Explanation of Solution
Given information:
It is given that the month has 20 production days. Monthly requirement of Model A is 2,000 units, Model B is 3,000 units, and Model C is 6,000 units.
Determine the daily production quantities and sequences:
Daily production quantity of Model A:
It can be calculated by multiplying monthly requirement of Model A and the value of one divided by the monthly production days.
Daily production quantity of Model B:
It can be calculated by multiplying monthly requirement of Model B and the value of one divided by the monthly production days.
Daily production quantity of Model C:
It can be calculated by multiplying monthly requirement of Model C and the value of one divided by the monthly production days.
Hence, the daily production quantity of Model A is 100, Model B is 150, and Model C is 300. Here, the common multiple is 50.
Determine the sequence for Model A:
Determine the sequence for Model B:
Determine the sequence for Model C:
Hence, the sequence would be (2) A (3) B (6) C.
Note: The largest common multiplier serves as the number of runs required per day.
Want to see more full solutions like this?
Chapter 7 Solutions
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
- Assume that Product Z is made of two units of A and four units of B. A is made of three units of C and four of D. D is made of two units of E. B is made of three units of E. If 50 units of Z is required to make, then how many units of D do they need? Group of answer choices 250 400 300 150 550arrow_forwardBased on the following product structure figure. A thousCnd and five hundred units of product A are needed to produCe. How many units of B, C, D, E, and F are needed and determine all the units level (low level code)? B(1) C (2) D (2) E (1) D (1) F (1) F (4) Low Level Code Unit Quantityarrow_forwardAtlanta Manufacturing Company produces products W, X, Y, and Z through a joint process. The joint costs amount to $250,000. Product Units Produced Sales Value at Split-Off Additional Costs of Processing Sales Value After Processing W 750 $10,000 $2,500 $15,000 X 1,500 $30,000 $3,000 $35,000 Y 1,000 $20,000 $4,000 $25,000 Z 1,500 $40,000 $6,000 $45,000 If W is processed further, profits of W will: 1) Increase by $2,500 2) Increase by $12,500 3) Decrease by $23,000 4) Increase by $5,000arrow_forward
- A make-to-order strategy produces products to customer specifications in large volumes. True Falsearrow_forwardSuppose a final assembly is produced by assembling two components. THE The first component, A, is produced internally and goes through three process steps, which are stamping, forging and machining, with scrap estimates of 10%, 15% and 25%, respectively. For every three produced units of component A, two are used in the final assembly and one is separate to meet spare parts needs. The second component, B, which is used exclusively in final assembly, is purchased from a supplier external and inspected on arrival; 2% do not pass inspection. A unit of the component purchased is required for each final assembly. The final assembly process produces 5% of scraps. Spare parts demands for component A and final Su assembly match to 1,000 and 5,000 units, respectively. How many input units are needed for produce component A, and how many units of component B should the firm buy?arrow_forwardJ.W. Electronics sells one of its 27-inch screen TV’s for $300. The fixed cost for producing this type of TV is $125 000. The variable cost per unit is $175 a) Based on the above information, what is the break-even point in units? show calculations b. The competition has reduced its price on a similar TV to $275. J.W. Electronics is considering reducing its selling price to $275 to compete. Find the new break-even point if the sales price is reduced to $275. Show your calculations c) Calculate the profit realized by J.W. Electronics on the sale of 1,500 TVs if it keeps its selling price at $300. Show your calculations.arrow_forward
- Consider the following information. PART X Gross Requirements Scheduled Receipts Projected On-Hand Inventory 130 Q-60, LT-3 weeks, Safety Stock - 20 Compute the planned order releases and projected on-hand inventory for component part X. Round your answers to the nearest whole number. If your answer is zero, enter "0". PART X Gross Requirements Scheduled Receipts Projected On-Hand Inventory 130 Planned Order Releases 1 50 50 1 50 130 0 2 0 WEEK 3 70 99 2 0 130 120 ®® 4 0 WEEK 3 70 30 0 5 130 x 4 0 30 5 130 20 0arrow_forwardProduct A Order Qty = 400 Order Lead Time = 2 Forecast Demand Scheduled Receipts Projected Available Inventory 400 Planned Order Receipts Planned Order Releases 1 300 OD 4, 6, 2 300 400 Sketch and fill in the grid on scrap paper to use on upcoming questions In what periods would you incur a planned order release? OA 1.3, and 4 2.4, and 5 OC 3,5, and 6 and 7 3 300 PERIODS 4 300 5 300 6 300 7 100 8 100arrow_forwardA company has an annual demand for a product of 2000 units, a carrying cost of $20per unit per year, and a setup cost of $100. Through a program of setup reduction,the setup cost is reduced to $20. Run costs are $2 per unit. Calculate:a. The EOQ before setup reduction.b. The EOQ after setup reduction.c. The total and unit cost before and after setup reduction.arrow_forward
- At a local concert hall, the owner charges $7 per ticket. The owner must pay his band $1200. Every customer receives a brochure that costs the owner $2 for each person. What system would determine when he breaks even?.arrow_forwardHaving safety stock of raw materials to protect against quality is an example of “Mura”. True or falsearrow_forwardCar manufacturers typically used what types of production modes O Assemble-to-order and make-to-order O All of above Make-to-stock and assemble-to-order Make-to-stock and make-to-orderarrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.