Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (11th Edition)
11th Edition
ISBN: 9780134111056
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 5, Problem 18P
To meet holiday demand, Penny’s Pie Shop requires a production line that is capable of producing 50 pecan pies per week, while operating only 40 hours per week. There are only four steps required to produce a single pecan pie with respective processing times of 5 minutes, 5 minutes, 45 minutes, and 15 minutes.
- What should be the line’s cycle time?
- What is the smallest number of workstations Penny could hope for in designing the line considering this cycle time?
- Suppose that Penny finds a solution that requires only four stations. What would be the efficiency of this line?
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Sam's Pet Hotel operates 51 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.00 per bag.
The following information is available about these bags:
> Demand
95 bags/week
> Order cost $52.00/order
> Annual holding cost = 25 percent of cost
> Desired cycle-service level = 80 percent
>Lead time 4 weeks (24 working days)
> Standard deviation of weekly demand = 15 bags
> Current on-hand inventory is 320 bags, with no open orders or backorders.
a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 75 bags per week. How much higher will total
costs be, owing to the distorted EOQ caused by this forecast error?
The costs will be $
higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)
Chapter 5 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (11th Edition)
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