What is the required buffer capacity of wip inventory rack

Assignment Help Cost Accounting
Reference no: EM132819438

Sushi's Gears is a production facility that produces metal gears. The first step is stamping, which happens at a press. There are two identical presses that operate simultaneously (gears can be stamped on either press). A press stamps one part at a time. It takes 1 minute to stamp a part, including loading and unloading. Before beginning a new batch of parts, there is a 20-minute setup involving die change. The batch size is 100 parts. In other words, after stamping 100 parts, the press must be set up again. The stamped parts are stored in a buffer area, called as the work-in-process (WIP) inventory rack. From here, the parts are taken to the furnace, where they are annealed (heat treated). Parts from different batches can be annealed together. To perform annealing, a boat (a type of fixture for holding stamped parts) loaded with parts is inserted into the furnace. While those parts are being annealed, newly stamped parts are loaded onto a spare furnace boat. Each boat can hold 70 parts. Once the boat is full, additional stamped parts are placed in the WIP inventory rack. After annealing is completed, the boat in the furnace is swapped with the boat outside the furnace and the next annealing cycle begins. Each annealing cycle takes a total of 30 minutes. The time to load and unload parts from a boat is very short, and can be neglected. The above system operates 8 hours a day, Monday through Friday. On Mondays, however, the furnace and both boats are cleaned. Thus, all parts stamped by the presses go straight to the WIP inventory rack on Mondays.

Problem 1. What is the throughput capacity of this system, in parts per week? In other words, how many parts can be processed per week?

Problem 2. What is the required buffer capacity of the WIP inventory rack?

Problem 3. What is the average inventory level in the WIP inventory rack (averaged over the factory operating hours)?

Problem 4. What is the system throughput capacity if the WIP inventory rack can hold only 500 parts?

Problem 5. What is the average number of factory operating hours that a part spends in the WIP rack in question 2? (Parts that do not wait in the WIP rack should be included in this average, and have zero waiting time by definition.)

Problem 6. What is the average number of factory operating hours that a part spends in the WIP rack in question 4? (Parts that do not wait in the WIP rack should be included in this average, and have zero waiting time by definition.)

Reference no: EM132819438

Questions Cloud

Starting your project plan : You were required to develop and submit a project idea. Your instructor should have provided you with either the okay to proceed with your idea
What you believe are the three most important concepts : Identify what you believe are the three most important concepts that they have they have presented as a part of their work. Explain why you think these are.
Which is an essential element of a joint arrangement : Which is an essential element of a joint arrangement? Under the PFRS 11, the arrangement between Moratalla Co and Magtibay Co is most likely a
Determine how much will paid to the preferred shareholders : Assume instead that the maximum cash dividend the company can pay in 2021 is $168,200. Determine how much will be paid to the preferred shareholders
What is the required buffer capacity of wip inventory rack : What is the throughput capacity of this system, in parts per week? In other words, how many parts can be processed per week?
Measurement scales : Nominal scales are used to describe a group or set of people with basic labels such as black, white, Christian or Jewish.
Describe the various factors and key decision areas : Describe the various factors and key decision areas that will dictate which of these CA methods should be used.
Briefly explain different types of survey bias : Briefly explain 3 different types of survey bias, and suggest ways that these biases can be avoided or mitigated.
Quantitative and qualitative voc methodologies : Compare and contrast the use of quantitative and qualitative VOC methodologies.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

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