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Assignment Ch12(c)

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11 diapositives · 329 Views · Aug 16, 2014

Assignment Ch12(c).

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Assignment Ch12(c)
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  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