Asked by Morgan Beasley on May 02, 2024
Verified
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?
Economic Production Quantity
A model that determines the optimal quantity of a product to produce, minimizing total holding and setup costs.
Setup Time
The time required to prepare a machine or process for production.
Lot Size
It denotes the quantity of units produced or ordered in a single batch, influenced by considerations like cost and demand.
- Investigate the influence of initial costs and timing on the organization of production schedules.
- Understand the implications of reducing lot size to one in JIT and lean production.
Verified Answer
BC
Brenda Cabrera GodoyMay 06, 2024
Final Answer :
Complete data for the problem is not necessary. To cut the lot size in half, S must be cut to 25% of its previous value, or from 40 minutes to 10 minutes. The reduction of lot size to 25 units requires another reduction by a factor of four, to 2.5 minutes. Reducing the lot size by a factor of ten requires the reduction in setup time by a factor of 100, the equivalent of 0.4 minutes.
Learning Objectives
- Investigate the influence of initial costs and timing on the organization of production schedules.
- Understand the implications of reducing lot size to one in JIT and lean production.