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A food processor uses approximately 29,730 glass jars a month for its fruit juice product. Because of storage limitations, a lot size of 4,000 jars has been used. Monthly holding cost is 18 cents per jar, and reordering cost is $60 per order. The company operates an average of 20 days a month.
The manager would prefer ordering 10 times each month but would have to justify any change in order size. One possibility is to simplify order processing to reduce the ordering cost. What ordering cost would enable the manager to justify ordering every other day?
An operation produces 190 units per hour with a scrap rate of 10 percent. If we could eliminate the scrap completely, what would be the percentage increase in productivity per hour
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A fishbone diagram as part of a six-sigma quality improvement process might be found in which DMAIC category?
Obsolete technology can cost an organisation its customers.Explain the role of computers in production and operations management
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