EBK PRINCIPLES OF OPERATIONS MANAGEMENT
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175859
Author: Munson
Publisher: VST
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Chapter 9, Problem 2.2VC
Summary Introduction

Introduction: President BC began his career at WC, the world largesst manufacturer of ambulances with only handful of employees. The firm has expanded to 350 and the physical plant has expanded with offices, R&D, final assembly and wiring and other facilities in large building. Due to rapid growth the painting work, aluminium fabrication and body installation into separate and warehousing into another.

Like other manufacturing companies, WC has problem with designing its facility from scratch. The material handling costs are bit higher than the normal layout. The aluminium cutting work is placed adjacent to the body-installation work cell. The product has to be driven across for its completion. The cell construction is flexible, small and movable so that they can be easily rearranged and transported to the assembly line.

Assembly line balancing is one of the key issues facing the company. Balancing the work with the workers is a challenging task and some workers are not able to complete the ambulance in seven days.

To determine: The suggestions to be given to Person BC.

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✓ Custom $€ .0 .on File Home Insert Share Page Layout Formulas Data Review View Help Draw Arial 10 B B14 ✓ X✓ fx 1400 > 甘く 曲 > 冠 > Comments Editing ✓ . . . P Q R S T 3 A Production cost ($/unit) B с D E F G H J K L M N $74.00 4 Inventory holding cost ($/unit) $1.50 5 Lost sales cost ($/unit) $82.00 6 Overtime cost ($/unit) $6.80 7 Undertime cost ($/unit) $3.20 8 Rate change cost ($/unit) $5.00 9 Normal production rate (units) 2,000 10 Ending inventory (previous Dec.) 800 11 Cumulative 12 13 Month Demand Cumulative Demand Product Production Availability Ending Inventory Lost Cumulative Cumulative Product Sales 14 January 1,400 1,475 15 FUERANZ222222223323333BRUINE 14 February 1,000 2,275 Month January February Demand Demand Production Availability Ending Inventory Lost Sales 1,400 #N/A 1,475 #N/A #N/A #N/A 1,000 #N/A 2,275 #N/A #N/A #N/A 16 March 1,800 2,275 March 1,800 #N/A 2,275 #N/A #N/A #N/A 17 April 2,700 2,275 April 2,700 #N/A 2,275 #N/A #N/A #N/A 18 May 3,000 2,275 May 3,000 #N/A…
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