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Yost-Perry Industries (YPI) manufactures a mix of afford able guitars
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Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
- New Mode Y Delay A Yost-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to work on that workstation alone and is paid $15 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000/week. Q Q Product A $11 Q Step 1 Station W (12 min) Step 2 Station Z (13 min) Purchased…arrow_forwardRecall "Tommy's Dresses to go" case. Three years after, this company still rents designer dresses to customers, but it has managed to streamline its internal processes and expand to different segments of demand. Now, customers can rent clothes for anywhere between 1 days to 30 days, and each customer is sent only one (1) dress (instead of 2 dresses described in the case). The company alsó takes only 13 number of days to turn around a dress (i.e., this the duration starting with return from a customer, to again being rented out to a customer). The current demand is an average of 1,000 customers per day, and the company owns total of 30 thousand dresses. What is the average rental duration? (i.e., what is the average number of days, a customer keeps a dress).arrow_forwardACME Company produces part X using the F-150 machine whoseinformation appears below: Determine how many machines are required to meet a requirement.production of 800,000 units per year.arrow_forward
- XYZ Leather Company manufactures and sells two products, wallets and belts, in its two-department plant. Operating data pertaining to the two products are as follows: Wallets Belts Selling price per unit P30 P50 Cost per unit: Variable manufacturing costs P8 P15 Variable marketing costs P2 P3 Fixed manufacturing costs P5 P5 Fixed marketing costs P6 P1 Cutting Finishing…arrow_forward1arrow_forwardThe Goodparts Company produces a component that is subsequently used in the aerospace industry. The component consists of three parts (A, B, and C) that are purchased from outside and cost 35, 30, and 10 cents per piece, respectively. Parts A and B are assembled first on assembly line 1, which produces 185 components per hour. Part C undergoes a drilling operation before being finally assembled with the output from assembly line 1. There are, in total, six drilling machines, but at present only three of them are operational. Each drilling machine drills part C at a rate of 80 parts per hour. In the final assembly, the output from assembly line 1 is assembled with the drilled part C. The final assembly line produces at a rate of 205 components per hour. At present, components are produced eight hours a day and five days a week. Management believes that if the need arises, it can add a second shift of eight hours for the assembly lines. The cost of assembly labor is 30 cents per part for…arrow_forward
- Motorking Corporation, a market leader in the production of specialized engine additives, is considering introducing a new "gas extender" product. This product is added to an automobile’s gasoline to extend mileage and reduce exhasut emissions. Motorking's manufacturing facility can produce 50,000 cases of the new product per year with a set-up cost of $100,000. The average variable cost per case would be $5. Large orders, (i.e., above 50,000 cases) will be subcontracted to a local refining company. Motorking has signed a secrecy agreement with the vendor that guards the basic process. The variable cost per case, if the new product is produced outside, is $9. Whether the product is manufactured by Motorking or by the vendor, there is a $12 per case cost for marketing and overhead. Motorking's production manager is considering three production levels for the new product: 50,000 cases, 75,000 cases, and 100,000 cases. The level of sales will depend on the state of the economy. Sales…arrow_forwardYork-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to work on that workstation alone and is paid $17 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000/week. Product A $11 Step 1 Station W (14 min) Step 2 Station Z (10 min) Raw materials $5 Purchased part…arrow_forwardTuff-Rider, Inc., manufactures touring bikes and mountainbikes in a variety of frame sizes, colors, and component com-binations. Identical bicycles are produced in lots of 100. Theprojected demand, lot size, and time standards are shown inthe following table: Item Touring MountainDemand forecast 5,000 units/year 10,000 units/yearLot size 100 units 100 unitsStandard processing time .25 hour/unit .50 hour/unitStandard setup time 2 hours/lot 3 hours/lot The shop currently works 8 hours a day, 5 days a week,50 weeks a year. It operates five workstations, each producingone bicycle in the time shown in the table. The shop main-tains a 15 percent capacity cushion. How many workstationswill be required next year to meet expected demand withoutusing overtime and without decreasing the firm’s currentcapacity cushion?arrow_forward
- (a) T. Smunt Manufacturing Corp. has the process displayed below. The drilling operation occurs separately from and simultaneously with the sawing and sanding operations. The product only needs to go through one of the three assembly operations (the assembly operations are "parallel"). ASSEMBLY SAWING SANDING 78 min/unit 15 min/unit 15 min/unit WELDING ASSEMBLY DRILLING 25 min/unit 78 min/unit 27 min/unit ASSEMBLY 78 min/unit 1. Which operation is the bottleneck? 2. What is the throughput time for the overall system? 3. If the firm operates 8 hours per day, 22 days per month, what is the monthly capacity of the manufacturing process? 4. Suppose that a second drilling machine is added, and it takes the same time as the original frilling machine. What is the new bottleneck time of the system? 5. Suppose that a second drilling machine is added, and it takes the same time as the original drilling machine. What is the new throughput time?arrow_forwardRick Wing has a repetitive manufacturing plantproducing automobile steering wheels. Use the following datato prepare for a reduced lot size. The firm uses a work year of305 days. a) What is the setup cost, based on the desired lot size?b) What is the setup time, based on $40 per hour setup labor?arrow_forwardTable 1 illustrates a typical traditional procurement process. This process is for relatively low- value items that do not need authorisation by a senior manager. Develop the new e-procurement process in table 2.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,