SOLVED

64) Daily usage of an assembly is 100 in a facility that operates 300 days of the year. Setup cost is $5 and annualized carrying cost is $160. Production of this assembly occurs at the rate of 400 per day when production of the assembly is underway. Lead time is 3 days; safety stock is 1/2 day’s production. What is the optimum kanban size, and number of kanbans? 65) Daily usage of a part is 20 in a facility that operates 250 days of the year. Setup cost is $20 and annualized carrying cost is $210. Production of this part occurs at the rate of 50 per day when production of the part is underway. Lead time is 1 day; safety stock is 1/2 day’s production. What is the optimum kanban size, and number of kanbans? 66) A certain product has been effectively managed in the past, according to its managers. The previous technique used the economic production quantity model, and resulted in an optimum lot size of 100. For this product, setup time is directly proportional to setup cost, and setup time is currently 40 minutes per batch. How much must setup time decline in order for the lot size to fall to 50 units? 25 units? 10 units? 67) A repetitive manufacturing firm is planning on level material use. The following information has been collected. Currently, the firm operates 250 days per year. Annual demand 22,000 Daily demand 88 Daily production 250 Desired lot size (2 hours of production) 63 Holding cost per unit per year $50 a. What is the setup cost, based on the desired lot size? b. What is the setup time, based on $40 per hour setup labor? 68) Labor cost for set-up is $500/hour. If the plant plans on level material use and operates 50 days per year, determine the time it takes to setup. Annual demand 5000 Daily production 1000 Lot size 700 Annual holding cost per unit $25