Decided to set up a small production facility

Assignment Help Operation Management
Reference no: EM13761308

Bruno decided to set up a small production facility in Sydney to sell to local restaurants that want to offer gelato on their dessert menu. To start simple, he would offer only three flavors of gelato: fragola (strawberry), Chocolato (chocolate), and bacio (chocolate with hazelnut). After a short time he found his demand and setup times to be

Fragola Chocolato Bacio

Demand (kg/hour) 10 15 5

Setup time (hours) 3/4 1/2 1/6

Bruno first produces a batch of fragola, then a batch of chocolato, then a batch of bacio and then he repeats that sequence. For example, after producing bacio and before producing fragola, he needs 45 minutes to set up the ice cream machine, but he needs only 10 minutes to switch from chocolato to bacio. When running, his ice cream machine produces at the rate of 50 kg per hour no matter which flavor it is producing ( and, of course, it can produce only on flavor at a time).

a. Suppose Bruno wants to minimize the amount of each flavor produced at one time while still satisfying the demand for each of the flavors. (He can choose a different quantity for each flavor.) If we define a batch to be the quantity produced in a single run of each flavor, how many kilograms should he produce in each batch?

b. Given your answer in part (a), how many kilograms of fragola should he make with each batch?

c. Given your answer in part (a), what is the maximum inventory of chocolato? (assume production and demand occur at constant rates)

Reference no: EM13761308

Questions Cloud

Idenitfy an it project : Idenitfy an IT project that failed. Using the IT project risk framework, identify at least four explicit or implicit risks that may have impacted the project. For each of the risks you identify, provide an analysis of the risk, assign one of the Risk..
Difference between regional and global products : What are some examples of regional products? What are some examples of truly global products? Is there a fundamental difference between regional and global products?
What problem-solving steps should raymond apply : What problem-solving steps should Raymond apply in this situation? How will the use of problem-solving steps impact his business?
Disadvantages of centralization and decentralization : Discuss the advantages and disadvantages of "centralization" and "decentralization" in terms of organizational design of any present or past firm of which you were a part. Did the design lead to productivity? Why or why not?
Decided to set up a small production facility : Bruno decided to set up a small production facility in Sydney to sell to local restaurants that want to offer gelato on their dessert menu. To start simple, he would offer only three flavors of gelato: fragola (strawberry), Chocolato (chocolate), and..
Minimize inventory holding and ordering costs : Sarah needs to purchase organic Palm oil to make her soaps. She needs 1,000 kgs of Palm oil per day on average. The supplier charges a $60 delivery fee per order (which is independent of the order size) and $4.75 per kg. Sarah’s annual holding cost i..
Charles lackey operates a bakery in idaho falls : 1.13 Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their..
Significant impact on the average profitability of firms : Government policies can have a significant impact on the average profitability of firms in an industry. Government, however, is not included as a potential threat in the five forces model. Should the model be expanded to include government (to make a..
Organizing-controlling problems is achieve suffering from : Course is Management and organizational behavior book is essentials of contemporary management sixth edition. What kinds of organizing and controlling problems is Achieve suffering from?

Reviews

Write a Review

Operation Management Questions & Answers

  Calculate the average number in the queue

Calculate the average number in the queue, average number in the system, average time in the queue, average time in the system, the system utilization rate, and the probability that the system is empty.

  Explain how you think to identified key resources support

Identify differences between them from a resource perspective also the industry analysis/positioning perspective. Explain how do you think the identified key resources support also/or contradict the suggestions you made for Coca-Cola in week 1.

  Describe the input-transformation-output relationships

For this discussion, evaluate and describe the input-transformation-output relationships in one of the following systems: a state penitentiary; or a funeral home.

  Consider an eoq model with shortages having demand rate

Consider an EOQ model with shortages having demand rate a, setup cost K, holding cost h, and shortage cost p. Alternatively, consider a POQ model with demand rate a, setup cost K

  List the six major categories of occupational illnesses

List the six major categories of occupational illnesses, and give three examples of each. What are some methods that can be used to control potential exposures in the workplace

  What is the optimal order quantity

What is the optimal order quantity (select the closest number) ? From the previous problem, what is the total annual inventory cost of your policy (select the closest number)?

  Question 1a company has actual unit demand for three

question 1a company has actual unit demand for three consecutive years of 113 143 and 199. the respective forecasts for

  Explain what does triple bottom line mean

What does triple bottom line mean. What are four types of strategies underpinning CSR decisions

  Chemistry between presenters and the buyer representatives

Buyer organizations seeking IT services usually require an oral presentation, with questions and answers, from the final several potential contractors. How important, in your view, are the interpersonal factors that come into play in this meeting-..

  Draft a business memo to the operations manager and

you are a new member of the operations team of a midsize manufacturing company with 500 employees. the decision makers

  What is the economic order quantity

One of Central's most popular valves, the Western, has an annual demand of 6,000 units. The price of each valve is $76, the inventory carrying cost is $5, and the ordering cost is $150 per order.

  Organizational effectiveness in organizational structures

A moderator is a qualitative (e.g., sex, race, class) or quantitative (e.g., level of reward) variable that effects the direction and/or strength of the relation between an independent...variable and a dependent...variable" to acquire Organization..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd