EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175859
Author: Munson
Publisher: VST
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Chapter 15, Problem 14P
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To determine: The assignment of electronic components to plants.
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A total of 5000 mechanical subassemblies are needed annually on a final assembly line. The subassemblies can be obtained in one of three ways: (1) Make them in one of three plants owned by the company; (2) buy them off the shelf from the one and only manufacturer; or (3) contract to have them made to specifications by a vendor. The estimated annual equivalent cost for each alternative is dependent upon specific circumstances of the plant, producer, or contractor. The information shown details the circumstance, a probability of occurrence, and the estimated annual cost. Construct and solve a decision tree to determine the least-cost alternative to provide the subassemblies.
Part A is processed on a MILLING machine; Part B is processed on a LATHE machine. Two parts (A and B) are then assembled on an ASSEMBLY machine. Standard times, scrap rates, efficiency, and availability of each machine and the assembly are given in the table below. Determine the number of milling (M), the lathe (L) and the assembly (A) machines needed to produce 100 good parts from this production system during and 8-hour (480 minutes) shift. (Note: Round up the number of parts processed on each station and then round up the number of machines needed).
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Chapter 15 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
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