A metal fabrication shop has a single punch press. There are currently three partsthat the shop has agreed to produce that require the press, and it appears that theywill be supplying these parts well into the future. You may assume that the press isthe critical resource for these parts, so that we need not worry about the interactionof the press with the other machines in the shop. The relevant information here isPart Annual Contracted Cost ProductionNumber Amount (demand) Setup Cost (per unit) Rate (per year)1 2,500 $80 $16 45,0002 5,500 120 18 40,0003 1,450 60 22 26,000Holding costs are based on an 18 percent annual interest rate, and the productsare to be produced in sequence on a rotation cycle. Setup times can be considerednegligible.a. What is the optimal time between setups for part number 1?b. What percentage of the time is the punch press idle, assuming an optimalrotation cycle policy?c. What are the optimal lot sizes of each part put through the press at an optimalsolution?d. What is the total annual cost of holding and setup for these items on the punchpress, assuming an optimal rotation cycle?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
A metal fabrication shop has a single punch press. There are currently three parts
that the shop has agreed to produce that require the press, and it appears that they
will be supplying these parts well into the future. You may assume that the press is
the critical resource for these parts, so that we need not worry about the interaction
of the press with the other machines in the shop. The relevant information here is
Part Annual Contracted Cost Production
Number Amount (demand) Setup Cost (per unit) Rate (per year)
1 2,500 $80 $16 45,000
2 5,500 120 18 40,000
3 1,450 60 22 26,000
Holding costs are based on an 18 percent annual interest rate, and the products
are to be produced in sequence on a rotation cycle. Setup times can be considered
negligible.
a. What is the optimal time between setups for part number 1?
b. What percentage of the time is the punch press idle, assuming an optimal
rotation cycle policy?
c. What are the optimal lot sizes of each part put through the press at an optimal
solution?
d. What is the total annual cost of holding and setup for these items on the punch
press, assuming an optimal rotation cycle?
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