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 one other element you feel is important to take, We know that all p...

We know that all perceptions are subjective and there is not necessarily a best way to understand any given situation. So, if there are so many moving parts to perception, how do y

Explain the decreased demands of ongoing operational work, All of the follo...

All of the following factor have influenced the increased reliance upon project management in recent years EXCEPT: A. Rapid growth and change in the information technology and t

Total and partial factor productivity measurements, Total and Partial Facto...

Total and Partial Factor Productivity Measurements  Total factor productivity (TFP) is the best measure when describing national productivity, because it includes all the inpu

Distinguish between legal and employee rights, Q1. What is the biggest chal...

Q1. What is the biggest challenge posed by egoisn Q2. Distinguish between legal and employee rights Q3. How is strategy different from a business model? How is it similar?

Labour intensity - operations function, Labour Intensity - Operations Funct...

Labour Intensity - Operations Function Labour intensity is defined as the ratio of the labour cost incurred to the value of the plant and equipment employed. It is important t

Explain minimize the cost of completing the survey, For a telephone survey,...

For a telephone survey, a marketing research group needs to contact at least 150 wives, 120 husbands, 100 single adult males, and 110 single adult females. It costs $2 to make a da

Define the order quantity and expected profits, suppose the manufacturer ha...

suppose the manufacturer has an inflated demand forecast as follows: Quantity Probability 2,200 5% 2,300 6% 2,400 10% 2,500 17% 2,600 30% 2,700 17% 2,800 12% 2,900 3% (a) Suppose t

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 an approach to a business diversity program, Describe an approach t...

Describe an approach to a business diversity program that would pragmatic and ethical

Explain legacy systems and improvements, Legacy Systems and Improvements Pl...

Legacy Systems and Improvements Please respond to the following: •From the e-Activity, discuss the challenges legacy systems pose for enterprise system integration. Provide specifi

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