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 effects of leadership, The Effects of Leadership on Innovative Prog...

The Effects of Leadership on Innovative Program Implementation. Dove, Maria G.; Freeley, Mary Ellen. Delta Kappa Gamma Bulletin, spring 2011, Vol. 77 Issue 3, p25-32. Read this art

Intermittent and continuous operations, Explain intermittent and continuous...

Explain intermittent and continuous operations. Under what type of situation it would be used in automobile industry?

What benefit would utilize the optimal order quantity yield, Garden Variety...

Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying cost per pot are estimated to be 30 percent of the cost and ordering costs

What are two aspects of self-concept, ------------- and--------------------...

------------- and---------------------are two related aspects of self-concept/1. Self-esteem, self-monitoring/2.self-esteem, self-assessment, 3 self moitoring;self-assessment/4 sel

Outsourcing, determine whether outsourcing of the particular manufacturing ...

determine whether outsourcing of the particular manufacturing operation makes financial sense

Explain team members via the team discussion board, As an individual, devel...

As an individual, develop an inspiring anecdote about something that actually happened, or might have happened, at a current or former employer. Make up a list of core values th

How did the corporation performs in the return on investment, How did the c...

How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?

Explain organization to appraise performance formally, Why is it necessary ...

Why is it necessary for an organization to appraise performance formally? Describe some situations in which an organization would be wise if it did not appraise performance formall

Explain formulate a marketing mix plan, Formulate a marketing mix plan for ...

Formulate a marketing mix plan for a travel agency by constructing a minimum of three marketing objectives and goals for each of the marketing mix components, product, price, distr

Explain contemporary strategy analysis, Ford's (Case 4) challenge in meetin...

Ford's (Case 4) challenge in meeting the needs of shareholders versus stakeholders. What ethical challenges and dilemmas might this pose? How should a corporate strategy be adju

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