Fabrication 24 min /batch Assembly 1 7 min./batch Fabrication 24 min /batch Pack
ID: 365785 • Letter: F
Question
Fabrication 24 min /batch Assembly 1 7 min./batch Fabrication 24 min /batch Packaging 3 min./batch Assembly 2 6 min /batch Fabrication 24 min./batch 26. Consider the assembly line above. The three fabrication operations run in parallel, such that each batch of 20 units only needs to go through one of the three fabrication operations. After that, each batch needs to go through both assebly operations, which occur simultaneously (specifically, 10 components are made for each unit in the fabrication stagesome components are then assembled in the Assembly 1 area while others are assembled in the Assembly 2 area). The units are packaged and made ready for shipment in the final stage. What is the effective capacity of this system? (a) 2.5 batches/hr (b) 7.5 batches/hr (c) 8.57 batches/hr (d) 10 batches/hr (e) 20 batches/hr Borges Machine Shop, Inc., has a 1-year contract for the production of 2,000 gear housings for a new off road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), but efficient, dedicated machine (DM). The cost data follow: flexible manufacturing system (FMS), and expensive GPE FMS DM 20,000 S 30,000 S 60,000 Annual Fixed Cost Per Unit Variable Cost 20 $ 16 Answer next two questions by the information given above. 27. If the contract for the second and third years is pending and the estimated demand is 3,000 units, which option is the best alternative for Luis? (a) GPE (b) FMS 28. How many cross-over points do we have in this problem? (c) DM 10Explanation / Answer
27.
Total costs for the three options for 3,000 units are cal culated as follows:
Minimum total annual cost(78,000) is corresponding to FMS , therefore it is the best alternative.
GPE FMS DM Annual Fixed cost-F 20000 30000 60000 Per unit Variable cost 20 16 8 Annual variable cost-V 60000 48000 24000 Total annual cost (F+V) 80000 78000 84000Related Questions
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