Tomlinson Furniture has a single lathe for turning the wood for various furniturepieces, including bedposts, rounded table legs, and other items. Four forms areturned on the lathe and produced in lots for inventory.To simplify scheduling, one lotof each type will be produced in a cycle, which may include idle time.The four products and the relevant information concerning them appears in the following table.Monthly Setup Unit ProductionPiece Requirements Time (hours) Cost Rate (units/day)J–55R 125 1.2 $20 140H–223 140 0.8 35 220K–18R 45 2.2 12 100Z–344 240 3.1 45 165Worker time for setups is valued at $85 per hour, and holding costs are based ona 20 percent annual interest charge. Assume 20 working days per month and12 months per year for your calculations.a. Determine the optimal length of the rotation cycle.b. What are the optimal lot sizes for each product?c. What are the percentages of uptime and downtime for the lathe, assuming that itis not used for any other purpose?d. Draw a graph showing the change in the inventory level over a typical cycle foreach product.e. Discuss why the solution you obtained might not be feasible for the firm, or whyit might not be desirable even when it is feasible.
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.
Tomlinson Furniture has a single lathe for turning the wood for various furniture
pieces, including bedposts, rounded table legs, and other items. Four forms are
turned on the lathe and produced in lots for inventory.To simplify
of each type will be produced in a cycle, which may include idle time.The four products and the relevant information concerning them appears in the following table.
Monthly Setup Unit Production
Piece Requirements Time (hours) Cost Rate (units/day)
J–55R 125 1.2 $20 140
H–223 140 0.8 35 220
K–18R 45 2.2 12 100
Z–344 240 3.1 45 165
Worker time for setups is valued at $85 per hour, and holding costs are based on
a 20 percent annual interest charge. Assume 20 working days per month and
12 months per year for your calculations.
a. Determine the optimal length of the rotation cycle.
b. What are the optimal lot sizes for each product?
c. What are the percentages of uptime and downtime for the lathe, assuming that it
is not used for any other purpose?
d. Draw a graph showing the change in the inventory level over a typical cycle for
each product.
e. Discuss why the solution you obtained might not be feasible for the firm, or why
it might not be desirable even when it is feasible.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 12 images
