Chapter 10, Problem 28P

a

Summary Introduction

Interpretation:

Run time of batches of wooden slates.

Concept Introduction: Materials Requirement Planning is a process in which planning is made for the requirement of raw material required for manufacturing of the finished product.

Explanation of Solution

Number of units demanded = 14,600 per year

Production rate per day = 160 units

Daily demand of units = 40 units.

Run time is calculated by dividing the demand and the production rate.

  $\text{Run}\text{time}\text{=}\frac{\text{Demand}\text{per}\text{year}}{\text{Production}\text{rate}\text{per}\text{day}\text{×}\text{Number}\text{of}\text{productions}\text{per}\text{year}}$

  $\text{Run}\text{time}\text{=}\frac{\text{14,600}\text{units}\text{per}\text{year}}{\text{160}\text{units}\text{per}\text{day}\text{×}\text{5}\text{times}\text{per}\text{year}}$

  $\text{Run}\text{time}\text{=}\text{18}\text{.25}\text{days}\text{per}\text{setup}$

Hence, the run time for one setup is 18.25 days per setup.

b

Summary Introduction

Interpretation:

Run size of batches of wooden slates.

Concept Introduction: Materials Requirement Planning is a process in which planning is made for the requirement of raw material required for manufacturing of the finished product.

Explanation of Solution

Run size is calculated by multiplying the run time and the production rate per day.

  $\begin{array}{l}\text{Run}\text{size}\text{=}\text{Run}\text{time}\text{×}\text{Production}\text{rate}\text{per}\text{day}\\ \text{=}\text{18}\text{.25}\text{days}\text{per}\text{setup}\text{×}\text{160}\text{unit}\text{per}\text{day}\\ \text{=}\text{2,920}\text{units}\text{per}\text{setup}\end{array}$

Hence, the run time for one set up is 2,920 units per setup.

c

Summary Introduction

Interpretation:

Maximum number of wooden slates o be used for wooden crates.

Concept Introduction: The efficiency of output is the actual productivity generated compared with the planned or effective capacity. It is usually calculated by dividing actual output by effective capacity.

Explanation of Solution

Maximum inventory is calculated by subtracting the number of units per setup from the run size.

Number of units per setup is calculated by multiplying the number of days per setup and the daily demand.

  $\begin{array}{l}\text{Number}\text{of}\text{units}\text{per}\text{setup}\text{=}\text{Number}\text{of}\text{days}\text{per}\text{setup}\text{×}\text{Daily}\text{Demand}\\ \text{=}\text{18}\text{.25}\text{days}\text{per}\text{setup}\text{×}\text{40}\text{units}\\ \text{=}\text{730}\text{units}\text{per}\text{setup}\end{array}$

Maximum inventory is calculated by subtracting the number of units per setup from the run size.

  $\begin{array}{l}\text{Maximum}\text{inventory}\text{=}\text{Run}\text{size}\text{-}\text{Number}\text{of}\text{units}\text{per}\text{setup}\\ \text{=}\text{2,920}\text{units -}\text{730}\text{units}\\ \text{=}\text{2,190}\text{units}\\ \end{array}$

Hence, the maximum inventory is 2,190 units.