OPERATIONS MANAGEMENT (LL) W/CONNECT
OPERATIONS MANAGEMENT (LL) W/CONNECT
14th Edition
ISBN: 9781265502942
Author: Stevenson
Publisher: MCG CUSTOM
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Chapter 14, Problem 6P

Determine the number of cycles per day and a production quantity per cycle for this set of products that achieves fairly level production:

Chapter 14, Problem 6P, Determine the number of cycles per day and a production quantity per cycle for this set of products

Assume the production sequence will be F-G-H-K.

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Suppose a final assembly is produced by assembling two components. THE The first component, A, is produced internally and goes through three process steps, which are stamping, forging and machining, with scrap estimates of 10%, 15% and 25%, respectively. For every three produced units of component A, two are used in the final assembly and one is separate to meet spare parts needs. The second component, B, which is used exclusively in final assembly, is purchased from a supplier external and inspected on arrival; 2% do not pass inspection. A unit of the component purchased is required for each final assembly. The final assembly process produces 5% of scraps. Spare parts demands for component A and final Su assembly match to 1,000 and 5,000 units, respectively. How many input units are needed for produce component A, and how many units of component B should the firm buy?
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A Company belonging to the process industry carries out three consecutive processes. The output of the first Process is taken as input of the second process, and the output of the second process is taken as input of the Third process. The final product emerges out of the third process. It is also possible to outsource the intermediate Products. It has been found that over a period of time cost of production of the first process is 10% higher than The market price of the intermediate product, available freely in the market. The company has decided to close Down the first process as a measure of cost saving (vertical spin off) and outsource. Should this event be treated As discontinuing operation?
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