Question NO. 4 Convinced by the efficiency of hybrid model, Sony, started to produce LED filaments of its Sony TV's itself while outsourcing all its other components. Initially, Sony can only produce these LED filaments at a very steady rate of eight hundred per day. Three hundred TVs are assembled daily in eight hours shift, 250 days a year. Due to difference in TVs demands and its production, LED filaments are only produced in batches of 2,000 units. Your are required to estimate; a. Annual production of LED filament batches in numbers b. Starting with zero inventory, if usage and production remains the same what would be the inventory levels after 76 hrs. Calculate average inventory levels when each production cycle starts with zero inventory. d. The same equipment that is used to make the LED filaments could also be used to make another
Question NO. 4 Convinced by the efficiency of hybrid model, Sony, started to produce LED filaments of its Sony TV's itself while outsourcing all its other components. Initially, Sony can only produce these LED filaments at a very steady rate of eight hundred per day. Three hundred TVs are assembled daily in eight hours shift, 250 days a year. Due to difference in TVs demands and its production, LED filaments are only produced in batches of 2,000 units. Your are required to estimate; a. Annual production of LED filament batches in numbers b. Starting with zero inventory, if usage and production remains the same what would be the inventory levels after 76 hrs. Calculate average inventory levels when each production cycle starts with zero inventory. d. The same equipment that is used to make the LED filaments could also be used to make another
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Question NO. 4
Convinced by the efficiency of hybrid model, Sony, started to produce LED filaments of its Soy TV's
itself while outsourcing all its other components. Initially, Sony can only produce these LED filaments at a
very steady rate of eight hundred per day. Three hundred TVs are assembled daily in eight hours shift, 250
days a year. Due to difference in TVs demands and its production, LED filaments are only produced in
batches of 2,000 units. Your are required to estimate;
Annual production of LED filament batches in numbers
b. Starting with zero inventory, if usage and production remains the same what would be the inventory
levels after 76 hrs.
Calculate average inventory levels when each production cycle starts with zero inventory.
d. The same equipment that is used to make the LED filaments could also be used to make another
filament used in the firm's other products. That job would require four days, including setup time.
Setup time for making a batch of the LED filament is a half day. Is there enough time to do this job
between production of batches of LED filaments? Explain.
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