1 / 11

Assignment Ch12(c)

Assignment Ch12(c).

palila
Download Presentation

Assignment Ch12(c)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Assignment Ch12(c) • The Dine Corporation is both a producer and a user of brass couplings. The firm operates 220 days a year and uses the couplings at a steady rate of 50 per day. u = 50. Coupling can be produced at rate of 200 per day. p=200. Annual storage cost is $1 per coupling, H=1, and machine setup cost is $35 per run, S=35. Since there are 220 days per year and u is equal to 50, therefore yearly demand is 50(220), D= 11000 • Determine the economic run size. • Approximately how many runs per year will there be? • Compute the maximum inventory level. • Determine the cycle time, run time and pure consumption time. • Compute the total cost

  2. Production, Consumption, Inventory

  3. EPQ: One period and One year p-u u One Period One Year

  4. Imax, Ordering Cost and Carrying Cost I max I max I max I max

  5. EPQ : Optimal Q

  6. The Problem • The Dine Corporation is both a producer and a user of brass couplings. The firm operates 220 days a year and uses the couplings at a steady rate of 50 per day. u = 50. Coupling can be produced at rate of 200 per day. p=200. Annual storage cost is $1 per coupling, H=1, and machine setup cost is $35 per run, S=35. Since there are 220 days per year and u is equal to 50, therefore yearly demand is 50(220), D= 11000 • Determine the economic run size. • Approximately how many runs per year will there be? • Compute the maximum inventory level. • Determine the cycle time, run time and pure consumption time. • Compute the total cost

  7. EPQ and # of Runs • u =50, p=200, H=1, S=35, D= 11000 • Determine the economic run size. • Approximately how many runs per year will there be? • D/Q = 11000/1013 = 10.85

  8. Run Time I max p-u u d2 d1 How much do we produce each time? Q How long does it take to produce Q? d1 What is our production rate per day? p • Run Time? • Q = pd1 1013 = 200d1 • d1= 1013/200 = 5.06

  9. Maximum Inventory I max p-u u d2 d1 • Maximum Inventory ? • At what rate inventory is accumulated? • p-u • For how long? • d1 • What is the maximum inventory? • IMax • IMax = (p-u)d1 • IMax = (200-50)(5.06) = 759

  10. Pure Consumption Time I max p-u u d2 d1 • What is the Maximum inventory? • IMax • How long does it take to consume IMax ? • d2 • At which rate Imax is consumed for d2 days • u • Imax = ud2 • 759 = 50d2 • d2 = 15.18

  11. Cycle Time, Total Cost • Cycle Time ? • d1 + d2 = 5.06 + 15.18 = 20.24 • Total Cost ? • TC = H(IMax/2) + S(D/Q) • TC = 1(759/2) + 35 (11000/1013) • TC = 379.5 + 379.5 = 759

More Related