Asked by Aleya Smith on May 06, 2024
Verified
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\begin{array} { | l | r | } \hline \text { Annual demand } & 22,000 \\\hline \text { Daily demand } & 88 \\\hline \text { Daily production } & 250 \\\hline \text { Desired lot size (2 hours of production) } & 63 \\\hline \text { Holding cost per unit per year } & \$ 50 \\\hline\end{array} Annual demand Daily demand Daily production Desired lot size (2 hours of production) Holding cost per unit per year 22,0008825063$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?
Setup Cost
Expenses incurred to prepare or configure a process, machine, or system for production or operation.
Setup Time
The time required to prepare equipment, machines, or systems for a manufacturing process or production run.
Daily Production
The total amount of output produced by a company or industry in a single day, often measured to assess operational efficiency.
- Examine the effects of initialization expenses and durations on the planning of production activities.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
(a) S = Q2∗H∗(1−d/p)2D\frac { Q ^ { 2 } * \mathrm { H } * ( 1 - d / p ) } { 2 D }2DQ2∗H∗(1−d/p) leads to = 632∗50(1−88/250)2∗22000\frac { 63 ^ { 2 } * 50 ( 1 - 88 / 250 ) } { 2 * 22000 }2∗22000632∗50(1−88/250) and S = $2.92
(b) Setup time = 4.38 min
(b) Setup time = 4.38 min
Learning Objectives
- Examine the effects of initialization expenses and durations on the planning of production activities.