(Round your answer to the nearest whole number.) (Round your answer up to the ne

Question

  (Round your answer to the nearest whole number.)

(Round your answer up to the nearest whole number.)

  (Round your answer up to the nearest whole number.)

   (Round your answer to two decimal places.)

JL.52 A producer of industrial climate control modules has recently changed to cellular manufacturing. The production facility operates 250 days per year and has annual demand of 7500 units They can produce up to 80 modules each day. It costs $18.75 to set up a work cell lines to produce this module. The cost of each module is $35 and annual holding costs are $7 per unit. Setup labor cost is $15 per hour.

Explanation / Answer

1. optimal size of the production run for this module-

Q0= {(2*D*S*p)/(H*(p-u))}^0.5

here

D = 7500 units per year ( this is manufacturers annual demand)
S = 18.75$ (it means cost when new production of units has to be started for example for example costs required to prepare the equipment for the job such as cleaning , adjusting and changing tools and fixtures)
H= 7 $ per unit per year ( costs required for keeping an item for one year in inventory like electricity , labour to handle items in inventory)
p= 250 units per day   ( when production is started then 250 units are produced daily)
u = 7500/250 (firm operates 250 days a year)=30 units per day ( means usage rate of wheels on daily basis)

if we put a the values in this formula

={(2*7500*18.75)/0.70(250-30)}^0.5=2137

So optimal size of the production run for this module is 2137

2.production runs will be required each year=D/Q=7500/2137=3.5095=4

3.How much time (in minutes) does it take to set up a work cell=Q/p=2137/250=8.548 days=12309 mins

4.Suppose the main customer for this module wants to purchase in quantities of 200 units. What is the required setup time (in minutes) to make this order quantity an optimal production run quantity

=Q/p*=2137/200=10.68 DAYS

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