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 intent or motive behind sexual harassment activities, Should be int...

Should be intent or motive behind Lewiston's conduct be considered when deciding sexual harassment activities? Explain

Small organizations or large organizations differ in design, How do small o...

How do small organizations and large organizations differ in design?

What is the objective under jit and time-based competition, _____ is the ob...

_____ is the objective under JIT and time-based competition. WIP reduction Material velocity Lead-time reduction Decreasing material wait time

Compute the expected average flow time, New Time Videos (NTV) is a new on-l...

New Time Videos (NTV) is a new on-line video rental service. In the field, it is trying to compete by offering its customers access to all of the major new video releases in one bu

Explain must prepare a budget for a change initiative, Change plans must co...

Change plans must consider the use of a companys resources to maximize potential and ensure success. Financial resources are a definite consideration for any plan or objective. I

Advantages and disadvantages of erp systems, Advantages and Disadvantages o...

Advantages and Disadvantages of ERP Systems Advantages May provide strategic advantage  Integrates the supply chain  May provide reduced costs  Off the shelf co

What are the terminal course objectives, Class, looking back over the Termi...

Class, looking back over the Terminal Course Objectives for this course, what are you looking forward to learning more about throughout your education and career?

Explain social responsibility, Regarding Social Responsibility, who do you ...

Regarding Social Responsibility, who do you agree with more, Leonard (2013) or Friedman (1970)? Why?

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