Mgmt E-5065 - Student Slides - Homework Solution - Jit Systems
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Transcript of Mgmt E-5065 - Student Slides - Homework Solution - Jit Systems
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Homework SolutionOperationsAndLogistics ManagementMGMT E-5065Krupp Refrigeration, Inc.Just-in-Time SystemsApplied Management Science for Decision Making, 2e 2014 Pearson Learning Solutions Philip A. Vaccaro , PhD
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Krupp Refrigeration, Inc. Krupp Refrigeration, Inc. is trying to reduce inventory and wants you to install a kanban system for compressors on one of its assembly lines.
REQUIREMENT :
1. Determine the size of the production batch (lot size) or Q*. 2. Determine the number of kanban trays (containers) that are needed. Problem 1
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Krupp Refrigeration , Inc.
Setup cost = $10.00
Annual carry cost per compressor = $100.00
Daily production = 200 compressors
Annual Usage ( demand ) = 25,000( 50 weeks x 5 days each x daily usage (demand) of 100 compressors )
Lead time = 3 days
Safety Stock = days production of compressors
Compartments per tray = 100
The Data
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Krupp Refrigeration , Inc.First, we must determine the optimal batch or lot size. Qp* = 2DSH [ 1 - d/p ]2(25,000)(10)100 [ 1 - 100/200 ] ==500,00050=10,000= 100 compressors
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Krupp Refrigeration , Inc.Then, we must determine the number of trays or kanbans.Demand during lead time = 300 ( 3 days x daily usage of 100 )
Safety stock = 100 ( days production x 200 ) Number of trays =Demand during lead time + Safety stock
Number of compartments=300 + 100
100= 400
100= 4 trays
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Krupp Refrigeration, Inc.Krupp determined that the cost, on an hourly basis,of setting up equipment is $30.00
REQUIREMENT :
Is the given setup cost of $10.00 valid?If so, what is the ideal setup time?
Krupp later determines that the cost, on an hourlybasis, of setting up equipment has now changed to $40.00
REQUIREMENT :
What should the ideal setup cost and setup time now be?Problem 2
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Krupp Refrigeration , Inc.The ideal setup cost is first determined :S =( Q ) ( H ) ( 1 - d/p )22DS =( 100 ) ( 100.00 ) ( 1 - 100/200 )22 ( 25,000 )S =( 10,000 ) ( 100.00 ) ( .5 )50,000S =500,00050,000= $10.00
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Krupp Refrigeration , Inc.Then, the ideal setup time can be determined.Setup time =Ideal Setup CostHourly Wage Setup time =$10.00
$30.00= .333 hour or 20 minutes
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Krupp Refrigeration , Inc.Then, the ideal setup time can be determined.Setup time =Ideal Setup CostHourly Wage Setup time =$10.00
$40.00= .250 hour or 15 minutes
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Krupp Refrigeration , Inc.Calculations Summary Produce 100 compressors at one time. Produce two times daily. The number of authorized trays should be four. The ideal setup cost should be $10.00 The ideal setup time should be 20 minutes.
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Homework SolutionOperationsAndLogistics ManagementMGMT E-5065Krupp Refrigeration, Inc.Just-in-Time Systems