QUESTION 27 A company which receives a monthly demand estimate for 750 Model X,
ID: 346087 • Letter: Q
Question
QUESTION 27
A company which receives a monthly demand estimate for 750 Model X, 1500 Model Y, and 1500 Model Z, is trying to decide how the models should be produced in order to smooth production as much as possible. Which of the following represent the best mixed model sequence? (Assume low setup times and 30 days per month)
25 units of Model X in Day 1, 50 units of Model Y in Day 2, and 50 units of Model Z in Day 3
25 units of Model X, then 50 units of Model Y, then 50 units of Model Z each day of the month
1 Model Z, 1 Model Y, 1 Model X, 1 Model Z, 1 Model Y, and repeat sequence 25 times per day every day of the month
25 Model X, then 100 Model Y for Day 1, 25 Model X, then 100 Model Z for Day 2, and repeat for each day of the month
750 units of Model X, then 1500 units of Model Y, then 1500 units of Model Z
25 units of Model X in Day 1, 50 units of Model Y in Day 2, and 50 units of Model Z in Day 3
25 units of Model X, then 50 units of Model Y, then 50 units of Model Z each day of the month
1 Model Z, 1 Model Y, 1 Model X, 1 Model Z, 1 Model Y, and repeat sequence 25 times per day every day of the month
25 Model X, then 100 Model Y for Day 1, 25 Model X, then 100 Model Z for Day 2, and repeat for each day of the month
750 units of Model X, then 1500 units of Model Y, then 1500 units of Model Z
Explanation / Answer
We have to produce - 750 Model X, 1500 Model Y, and 1500 Model Z. Below is an evaluation of all 5 options:
1. Total Model X produced in a day = 25, production every 3rd day, hence production of X in 10 days = 250
Similarly, production of Y and Z = 500 each. We do not meed demand of any model.
2. Production of X in a month = 25*30 = 750 , Production of Model Y and Z = 1500 each (MEETS DEMAND)
3. In a day, 25 Models of Z, Y, and X are produced. We will have 750 units each of all 3 models. Will not meet the demand for Y and Z model.
4. In this case, we produce 25 of Model X every day, so in a month we will have = 750 Units. Model Y And Z are produced 100 alternative days, so 1500 units each. (Meets Demand)
5. This is conventional sequencing (Meets demand)
Now, evaluating option 2, 4 and 5, the option 5 is directly eliminated as it is against the principles of the mixed model sequence. In this case, Models are produced sequentially i.e. entire resources are put to one model till its production is equal to demand. Also, in a mixed model, the production of each model is proportionate to total output and is consistent with customer demand.
Evaluating option 2 and 4, In option 2 there is a changeover twice a day, however, setup time is low. the models are produced in a ratio to customer demand daily for 30 days. Hence, we choose OPTION 2, as option 4 violates the principle of producing every day relative to customer demand.
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