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

Service sector - financial services, Service Sector - Financial Services ...

Service Sector - Financial Services 1. Explosion of customer choice  2. Globalisation of financial services - extensive use of computer technology  3. Innovation on bot

Organisational behaviour, #ques 2. What, in your opinion, could be the rea...

#ques 2. What, in your opinion, could be the reasons for different Managerial thinking in this case? tion..

Explain repetition of new product, You are a consultant called in to estima...

You are a consultant called in to estimate the costs after the employees learn how to do a job more efficiently by repetition of new product. You find a company can produce a produ

Explain lean approach to supply chain management, Does a Vendor Managed Inv...

Does a Vendor Managed Inventory system support a "lean" approach to supply chain management? Explain

Compute a simple exponential smoothing forecast, The actual demand of the p...

The actual demand of the patients at Omaha Emergency Medical clinic for the first six weeks of the year are as follows: week Actual # of patients 1 65 2 62 3 70 4 48 5 63 6

Factor rating method, East Coast Manufacturing, Inc. plans to locate a new ...

East Coast Manufacturing, Inc. plans to locate a new production facility in Hartford, Philadelphia, or Baltimore.  Six location factors are important:  cost per product unit, labor

Explain Causes of Organisational Change, Explain Causes of Organisational C...

Explain Causes of Organisational Change. Causes of Organisational Change: Causes of Organisational modifies are as follows: (A) External pressures (i) Change in Equipme

Explain planning of the project, You have been appointed as a project manag...

You have been appointed as a project manager for a high dollar project for the private sector and you have been asked by your boss to identify the stakeholder groups and the indivi

Explain organizations need to calculate a threshold, Why do organizations n...

Why do organizations need to calculate a threshold for a reorder? How could this affect sales?

Explain some inherent challenges in using decision trees, What are some inh...

What are some inherent challenges in using decision trees effectively in today's organizations? How can these challenges be overcome?

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