Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 12, Problem 16P
Summary Introduction

Interpretation: Number of parts created each day needs to be determined using level scheduling based on the given information.

Concept Introduction: Level scheduling is an approach towards manufacturing which tends to maintain a constant and smooth flow of production over the period.

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A company has an annual demand for a product of 2000 units, a carrying cost of $20 per unit per year, and a setup cost of $100. Through a program of setup reduction, the setup cost is reduced to $20. Run costs are $2 per unit. Calculate: The EOQ before setup reduction. The EOQ after setup reduction. The total and unit cost before and after setup reduction.
The demand for screens for a computer manufacturer is 10,000 per week. The lead time is 5 days, and this manufacturer wants to hold 2 days of safety stock. If the container size of computers is 200, what is the Kanban number? If the lead time improves to 4 days, what is the Kanban number? If the lead time moves out to 6 days and the manufacturer wants 3 days of safety stock, what is the Kanban number?
A company has an annual demand for a product of 2000 units, a carrying cost of $20per unit per year, and a setup cost of $100. Through a program of setup reduction, thesetup cost is reduced to $20. Run costs are $2 per unit. Calculate: The EOQ before setup reduction. The EOQ after setup reduction. The total and unit cost before and after setup reduction.
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