Carol Cagle has a repetitive manufacturing plantproducing trailer hitches in Arlington, Texas. The plant hasan average inventory turnover of only 12 times per year. Shehas therefore determined that she will reduce her componentlot sizes. She has developed 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 = $20How many minutes of setup time should she have her plantmanager aim for regarding this component?
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.
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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