a)
To determine: The number of trucks needed.
Introduction:
Lean systems in an organization would have greater impact on the customers and their values. The goal of lean thinking is to improve the productivity of the department, and the goal for any lean system is to maximize the customer value.
b)
To determine: The consequences when the truck breaks down.
Introduction:
Lean systems in an organization would have greater impact on the customers and their values. The goal of lean thinking is to improve the productivity of the department, and the goal for any lean system is to maximize the customer value.
c)
To determine: The way to ensure that the customer does not run out of parts even when there are delivery problems or other uncertainties.
Introduction:
Lean systems in an organization would have greater impact on the customers and their values. The goal of lean thinking is to improve the productivity of the department, and the goal for any lean system is to maximize the customer value.
d)
To determine: The consequences to the supplier if the customer runs into trouble and shuts down for six hours.
Introduction:
Lean systems in an organization would have greater impact on the customers and their values. The goal of lean thinking is to improve the productivity of the department, and the goal for any lean system is to maximize the customer value.
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Gen Combo Looseleaf Operations Management In Supply Chain; Connect Access Card
- Answer the given with question proper explanation and step by step solution. a) A supplier of instrument gauge clusters uses a Kanban system to control material flow. The gauge clusterhousings are transported five at a time. A fabrication center produces approximately 18 gauges per hour.It takes approximately two hours for the housing to be replenished. Due to variations in processing times,management has decided to keep 35 percent of the needed inventory as safety stock. How many Kanbancard sets are needed? b) Transmissions are delivered to the fabrication line six at a time. It takes 180 minutes for transmissionsto be delivered. Approximately eighteen vehicles are produced each hour, and management has decidedthat 20 percent of expected demand should be maintained as safety stock. How many Kanban card setsare needed?arrow_forwardRick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to pre-pare for a reduced lot size. The firm uses a work year of 305 days. Annual demand for steering wheels 30,500Daily demand 100Daily production (8 hours) 800Desired lot size (2 hours of production) 200Holding cost per unit per year $10 a) What is the setup cost, based on the desired lot size?b) What is the setup time, based on $40 per hour setup labor?arrow_forwardA fabrication cell at Spradley's Sprockets uses the pull method to supply gears to an assembly line. George Jitson is in charge of the assembly line, which requires 624 gears per day. Containers typically wait 1.6 day in the fabrication cell. Each container holds 80 gears, and one container requires 1.1 day in machine time. Setup times are negligible. If the policy variable for unforeseen contingencies is set at 0.06, how many containers should Jitson authorize for the replenishment system? Jitson should authorize ___ containersarrow_forward
- Lead time to deliver order to customer is shortest in OaMake-to-order Ob. Assemble-to-order OcMake-to-stock Od. None of thesearrow_forwardA large hospital that batches orders for a variety of surgical supplies with its preferred supplier should use a? A. P system B. D system C. Q system D. Z systemarrow_forwardCarol 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. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost $20 per hour Annual holding cost $15 per unit Daily production 992 units/8 hour day Annual demand 36,000 (250 days each×daily demand of 144 units) Desired lot size 124 units (one hour of production) To obtain the desired lot size, the set-up time that should be achieved = nothing minutes (round your response to two decimal places).arrow_forward
- Reactions and additional comments: Per the textbook definition, the term bullwhip effect “Describes the distortions in a supply chain caused by changes in customer demand, resulting in large swings in inventory levels as the orders ripple upstream from the retailer to the distributor and manufacturer” (Wallace, 2020, p. 137). The term is derived from physics. When cracking a whip, someone just has to snap their wrist and it causes a wave like effect that increases with a chain reaction. The bullwhip effect is a term that was first used in the 1990s. The makers of Pampers had many changes in order volumes, when usually diapers were bought at a constant rate (The Bullwhip effect : History and solutions, 2021). This caused the company to receive hard hits in demand with each new order from the retailers. For example, during the Covid-19 pandemic, everyone was told to stay home, go to school from home, and work from home. This caused the need for many more computers and electronic…arrow_forwardA 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.arrow_forwardCarol Cagle has a repetitive manufacturing plant pro-ducing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. She has therefore deter-mined that she will reduce her component lot sizes. She has devel-oped the following data for one component, the safety chain clip: Annual demand = 31,200 unitsDaily demand = 120 unitsDaily production (in 8 hours) = 960 unitsDesired lot size (1 hour of production) = 120 unitsHolding cost per unit per year = $12Setup labor cost per hour = $20 How many minutes of setup time should she have her plant man-ager aim for regarding this component?arrow_forward
- 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. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost $20 per hour Annual holding cost $13 per unit Daily production 992 units/8 hour day Annual demand 25,300 (275 days each×daily demand of 92 units) Desired lot size 124 units (one hour of production) To obtain the desired lot size, the set-up time that should be achieved =minutes (round your response to two decimal places).arrow_forwardDeja Brew, Inc., produces and sells 1,000 pallets of tea. Selling price per pallet: $700 Variable cost per pallet: $100 Annual fixed costs: $20,000 How many units would Deja Brew, Inc., need to sell to make $10,000? Round to the nearest whole pallet.arrow_forwardA 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.arrow_forward
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