OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9780077835439
Author: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
Publisher: McGraw-Hill Education
Question
Book Icon
Chapter 7, Problem 1P

a)

Summary Introduction

To determine: The daily production quantities and sequences.

Introduction:

Lean systems in an organization would have greater impact on the customers and their values. The goal of lean thinking is to improve the productivity of the department and the goal for any lean system is to maximize the customer value.

a)

Expert Solution
Check Mark

Explanation of Solution

Given information:

It is given that the month has 20 production days. The monthly requirement of Model A is 5,000 units, Model B is 2,500 units, and Model C is 3,000 units.

Determine the daily production quantities and sequences:

Daily production quantity of Model A:

This can be calculated by multiplying the monthly requirement of Model A and the value of one divided by the monthly production days.

Daily requirement of Model A=(Monthly requirement)×1Production days=5,000×120=5,000×0.05=250

Daily production quantity of Model B:

It can be calculated by multiplying monthly requirement of Model B and the value of one divided by the monthly production days.

Daily requirement of Model B=(Monthly requirement)×1Production days=2,500×120=2,500×0.05=125

Daily production quantity of Model C:

It can be calculated by multiplying monthly requirement of Model C and the value of one divided by the monthly production days.

Daily requirement of Model C=(Monthly requirement)×1Production days=3,000×120=3,000×0.05=150

Hence, the daily production quantity of Model A is 250, Model B is 125, and Model C is 150. Here, the common multiple is 25.

Determine the sequence for Model A:

Sequence=Daily production requirementCommon multiple=25025=10

Determine the sequence for Model B:

Sequence=Daily production requirementCommon multiple=12525=5

Determine the sequence for Model C:

Sequence=Daily production requirementCommon multiple=15025=6

Hence, the sequence is (10) A (5) B (6) C.

Note: The largest common multiplier serves as the number of runs required per day.

b)

Summary Introduction

To determine: The daily production quantities and sequences.

Introduction:

Lean systems in an organization would have greater impact on the customers and their values. The goal of lean thinking is to improve the productivity of the department and the goal for any lean system is to maximize the customer value.

b)

Expert Solution
Check Mark

Explanation of Solution

Given information:

It is given that the month has 20 production days. Monthly requirement of Model A is 2,000 units, Model B is 3,000 units, and Model C is 6,000 units.

Determine the daily production quantities and sequences:

Daily production quantity of Model A:

It can be calculated by multiplying monthly requirement of Model A and the value of one divided by the monthly production days.

Daily requirement of Model A=(Monthly requirement)×1Production days=2,000×120=2,000×0.05=100

Daily production quantity of Model B:

It can be calculated by multiplying monthly requirement of Model B and the value of one divided by the monthly production days.

Daily requirement of Model B=(Monthly requirement)×1Production days=3,000×120=3,000×0.05=150

Daily production quantity of Model C:

It can be calculated by multiplying monthly requirement of Model C and the value of one divided by the monthly production days.

Daily requirement of Model C=(Monthly requirement)×1Production days=6,000×120=6,000×0.05=300

Hence, the daily production quantity of Model A is 100, Model B is 150, and Model C is 300. Here, the common multiple is 50.

Determine the sequence for Model A:

Sequence=Daily production requirementCommon multiple=10050=2

Determine the sequence for Model B:

Sequence=Daily production requirementCommon multiple=15050=3

Determine the sequence for Model C:

Sequence=Daily production requirementCommon multiple=30050=6

Hence, the sequence would be (2) A (3) B (6) C.

Note: The largest common multiplier serves as the number of runs required per day.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
The Bill of Material for a manufactured part has 10 items. These items are stored in a stockroom. No safety stock is planned for these items. The stockroom has inventory record accuracy of 95%. What is the probability of successfully finding required quantities of all 10 items to produce the manufactured part in this system?   A. 60% B. 78% C. 90% D. 95% E. none of the above
Suppose a final assembly is produced by assembling two components. THE The first component, A, is produced internally and goes through three process steps, which are stamping, forging and machining, with scrap estimates of 10%, 15% and 25%, respectively. For every three produced units of component A, two are used in the final assembly and one is separate to meet spare parts needs. The second component, B, which is used exclusively in final assembly, is purchased from a supplier external and inspected on arrival; 2% do not pass inspection. A unit of the component purchased is required for each final assembly. The final assembly process produces 5% of scraps. Spare parts demands for component A and final Su assembly match to 1,000 and 5,000 units, respectively. How many input units are needed for produce component A, and how many units of component B should the firm buy?
Production planning and control, work centres, inventory control, and cost accounting play an integral role in the conversion cycle.     Required: Discuss the control problems and the possible dangers in the business activities of these departments. Further, recommend the corrective procedures to overcome these dangers.
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.