Essay on Three Jays Coorpoation Case Studa

2120 Words May 5th, 2015 9 Pages
Operations Management
Instructor: Manuel Baganha
TA: Virginia Ulfig
Fall Semester 2014/2015

Three Jays Corporation Case II

Chantal Al-Koufri – 11635
Duarte Mendes – 11166
Mafalda Lencastre – 11227
Sara Lopes – 11286

To whom it may concern, As President Jana Fremont requested as the goal of my internship, I have evaluated the current inventory situation at Three Jays Corporation. In order to do so, I had to make a series of analyses that I will proceed to present, which will, in turn, lead to a set of recommendations taking into account the current situation and the objectives of the company. Current Situation Three Jays, as I have learned, is a company which produces and
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Components of the EOQ formula I begin my analysis by taking a closer look to the production process. We know that all raw ingredients are assembled and mixed in a 50-gallon kettle, which corresponds to 7447 dry ounces. By dividing this by the size of the jars available for purchase, it is fairly intuitive that there is a potential for producing a maximum of 620 12-oz jars, 930 8-oz jars, 1861 4-oz jars and 3723 2-oz jars. This is the maximum batch size that could potentially be produced by the process, unless both kettles were used at once, which I, for the purposes of this analysis, assume does not occur. I will also assume that the 50-gallons are fully used. The 12-oz jars take 12,4 minutes to complete the filling activity, obtained by dividing 620 jars by 50, the number of jars the machine can fill in a minute. The flow time for one batch of 12-oz jars is, therefore, 87,4 minutes, assuming that the amount of time the batch spends in the holding tank, the capping activity, the labeling and coding, and the packing and palletizing is negligible. This assumption is justified by the fact that there is no mention of the flow rate of these activities in the informations that I was given at the beginning of my internship. Performing the same type of analysis for the other jar sizes, an 8-oz batch takes 93,6 minutes to be produced, a 4-oz batch takes 99,8 and a 2-oz batch is only finished after 124,64 minutes. Because all SKUS scheduled to be produced in the last