The Company wants to level the production mix at the pacemaker. The average daily demand and their variance for the five products in this product family is as shown in the following Table. Product ID A1 A2 B1 B2 B3 C Daily Demand ~ N(mean,variance) (144, 400) (120,400) (48,100) (48,100) (48,100) (24,25) A day is 432 minutes (after excluding paid breaks and lunch) and a pallet holds 12 units of any part. Items A1 & A2 are ordered daily, items B1, B2 & B3 once every three days and item C occasionally. The company keeps finished good stock for products A&B (with a buffer stock to cover 97.7% of demand surges) and produces C on demand. How would you schedule the average daily orders? How many units of stock are you going to keep in the finished goods supermarket? Consider the following demand for Monday: Product ID A1 A2 B1 B2 B3 C1 Monday Orders 168 108 156 0 0 36 Do you have enough stock and the required capacity to meet the demand for products on Monday? How would you schedule the orders for Monday?
The Company wants to level the production mix at the pacemaker. The average daily demand and their variance for the five products in this product family is as shown in the following Table. Product ID A1 A2 B1 B2 B3 C Daily Demand ~ N(mean,variance) (144, 400) (120,400) (48,100) (48,100) (48,100) (24,25) A day is 432 minutes (after excluding paid breaks and lunch) and a pallet holds 12 units of any part. Items A1 & A2 are ordered daily, items B1, B2 & B3 once every three days and item C occasionally. The company keeps finished good stock for products A&B (with a buffer stock to cover 97.7% of demand surges) and produces C on demand. How would you schedule the average daily orders? How many units of stock are you going to keep in the finished goods supermarket? Consider the following demand for Monday: Product ID A1 A2 B1 B2 B3 C1 Monday Orders 168 108 156 0 0 36 Do you have enough stock and the required capacity to meet the demand for products on Monday? How would you schedule the orders for Monday?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The Company wants to level the production mix at the pacemaker. The average daily
|
Product ID |
A1 |
A2 |
B1 |
B2 |
B3 |
C |
|
Daily Demand ~ N(mean,variance) |
(144, 400) |
(120,400) |
(48,100) |
(48,100) |
(48,100) |
(24,25) |
A day is 432 minutes (after excluding paid breaks and lunch) and a pallet holds 12 units of any part. Items A1 & A2 are ordered daily, items B1, B2 & B3 once every three days and item C occasionally. The company keeps finished good stock for products A&B (with a buffer stock to cover 97.7% of demand surges) and produces C on demand.
- How would you schedule the average daily orders?
- How many units of stock are you going to keep in the finished goods supermarket?
- Consider the following demand for Monday:
|
Product ID |
A1 |
A2 |
B1 |
B2 |
B3 |
C1 |
|
Monday Orders |
168 |
108 |
156 |
0 |
0 |
36 |
Do you have enough stock and the required capacity to meet the demand for products on Monday? How would you schedule the orders for Monday?
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