Operations Management
Operations Management
11th Edition
ISBN: 9780133148787
Author: HEIZER
Publisher: PEARSON
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Chapter 16, Problem 8P

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••• 16.8 Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. She has therefore determined that she will reduce her component lot sizes. She has developed the following data for one component, the safety chain clip:

Annual demand = 31,200 units

Daily demand = 120 units

Daily production (in 8 hours) = 960 units

Desired lot size (1 hour of production) = 120 units

Holding cost per unit per year = $12

Setup labor cost per hour = $20

How many minutes of setup time should she have her plant manager aim for regarding this component?

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QUESTION 3Warehousing is an important contributor to both productivity management and quality in a manufacturing industry. (a) Discuss symptoms of inefficient material handling in a warehouse.The following information is provided; Stock keeping unit(SKU) | Number of PalletsSKU 010                                         4            SKU 020                                         6 SKU 030                                        14 SKU 040                                         8 SKU 050                                         5 The pallets are being stored 3 high. Calculate: i. The number of pallet positions required to store the full consignment? ii. The percentage space utilisation in this warehouse.
QUESTION THREEWarehousing is an important contributor to both productivity management and quality in a manufacturing industry. (a) Discuss symptoms of inefficient material handling in a warehouse.The following information is provided; Stock keeping unit (SKU)  Number of PalletsSKU 010                                         4            SKU 020                                         6 SKU 030                                        14 SKU 040                                         8 SKU 050                                         5 The pallets are being stored 3 high. Calculate: i. The number of pallet positions required to store the full consignment? ii. The percentage space utilisation in this warehouse.
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