Economic order quantity, Operation Management

Assignment Help:

The Warehouse Company supplies spare parts for its two plants, Plant A and PlantB. Plant A and Plant B do not have any significant storage space. Hence you want carryminimum possible inventory at the plants A, B.

The warehouse W stocks two types ofspare parts, part #A for the Plant A and part #B for the Plant B. The WarehouseCompany uses a state of the art automated retrieval system (ARS) to retrieve parts fromstorage in the warehouse.

Part # A: The retrieval system takes 1 minute/unit to retrieve and send the part to theloading dock.

Part # B: The retrieval system takes 1 minute/unit to retrieve and send the part to theloading dock.

Whenever the retrieval system has to switch from part #A to part #B, there is a "deadloss" of 30 minutes.

Whenever the retrieval system has to switch from part #B to part #A, there is a "deadloss" of 30 minutes.

The demand for A at the Plant A is deterministic and is 15 units /hr. or 360units/day.

The demand for B at the Plant B is deterministic and is 15units /hr. or 360units /day.

Assume that a Day=24hrs. Thus, Plant A, Plant B, and the Warehouse Company are all open around the clock.

Plant A and Plant B and the Warehouse Company are all located in Houston, and hencethe transportation time from the loading dock of the Warehouse Company to the plants isnegligible.

The goal is to use the ARS efficiently so as to keep the plants busy as much as possible. Design a scheme to use the ARS efficiently. Specifically,

a. How many units of part A will be retrieved and shipped before you switch to part B?

b. How many units of part B will be retrieved and shipped before you switch to part A?


Related Discussions:- Economic order quantity

Explain what must the beta of this stock be, A stock has an expected return...

A stock has an expected return of 10.2 percent, the risk-free rate is 4.5 percent, and the market risk premium is 8.5 percent. What must the beta of this stock be?

Explain simple to state and very difficult to execute, The Assignment is at...

The Assignment is at the same time very simple to state and very difficult to execute. It is designed to allow you to use all the tools of strategy and analysis that you have learn

Explain unethical behaviour proposed by saul gellerman, Of the four commonl...

Of the four commonly held rationalizations for unethical behaviour proposed by Saul Gellerman, which one do you thing gets use most often? Why?

Give me an instance of a preference matrix, Can anyone give me an example o...

Can anyone give me an example of a preference matrix?

Define the cost of equity as a check on the capm calculation, Was there som...

Was there some other way to estimate the cost of equity as a check on the CAPM calculation?

Explain divisions of labour are appropriate, Draw an organizational chart o...

Draw an organizational chart of the business school or college that you attend. Outline its major roles and functions. How differentiated is it? Do you think the distribution of au

Explain what are the upper and lower control chart limits, The defect rate ...

The defect rate for a product has historically been about 2.4%. What are the upper and lower control chart limits for a p-chart, if you wish to use a sample size of 100 and 3-sigma

Explain best decision based on an expected monetary value, The product desi...

The product design group of Flores Electrick Supplies, Inc., has determined that it needs to design a new series of switches. It must decide on one of three design strategies. The

Explain how does a company''s vision and plans affect, How does a company's...

How does a company's vision & plans affect its structure?

Write Your Message!

Captcha
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