Manufactures the brake petals for a bicycle

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Reference no: EM131130325

1. Jack is a production manager at the company XYZ which manufactures the brake petals for a bicycle. Annual production quantity for the petals is 12K, and average cycle time for production is 2 months for a petal. The company wants to reduce current work-in-process by 20%. Please provide your suggestions to achieve that aggressive goal in terms of annual production quantity and cycle time. (5)

2. You would like to develop a pull production system in your shop floor. For one work center "ABC" producing small springs for a pen, the daily demand is 150 units. Whenever you order the raw material for this spring, you need to wait 6 days. One day, your boss asked how many bins of size 50 (a bin can store up to 50 springs) your department needs to carry for this process ABC. Based on historical analysis, your department keeps 10% safety stock to prevent any inventory shortage.

Reference no: EM131130325

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