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

What is long-term profitability goals, Discuss the strategic importance of ...

Discuss the strategic importance of layout decisions. How important as these decisions in terms of a company's long-term profitability goals? What are some examples?

Explain the employers responsibility, Describe the employers responsibility...

Describe the employers responsibility, giving at least three examples. Be sure to use a credible academic/professional source and include the link in your summary.

Why is it vital for a leader to be able to manage cultuers, Why is it impor...

Why is it important for a leader to be able to manage across cultures? Communicate your thoughts on the following statement: Leaders who cannot understand cultural differences in p

Relationship that exist among companies and profit motives, Explain the rel...

Explain the relationship that exist between companies, profit motives, competition and private property.

Describe be sure to justify your reasons, How would you allocate the $100,0...

How would you allocate the $100,000 bonus money and why? Remember, no 2 managers can get the same amount. Be sure to justify your reasons.

Explain organization culture importance to business success, Describe organ...

Describe organization culture. Provide a definition and explanation of its importance to business success?

Explain election in six months after ratification, Jack is a 2nd level mana...

Jack is a 2nd level manager at Johnson Controls. His department includes 2 supervisors, 5 night shift security guards, 5 technical workers, 10 janitorial staff, and 25 manufacturin

Explain payoff table provides profits based on decision, The following payo...

The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Amber Gardner's software firm: DEMAND Decision LOW

Explain how many units are needed to break, A manufacturing process has a f...

A manufacturing process has a fixed cost of $150,000 per month. Each unit of product being produced contains $25 worth of material and takes $45 of labour. How many units are neede

Explain factors weighing the pros and cons, Examine each possibility and th...

Examine each possibility and the factors you will consider in weighing the pros and cons.

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