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A company produces hand-painted yard & home signs. It is primarily a wholesaler (i.e., its customers are typically shops that sell the signs to end
A company produces hand-painted yard & home signs. It is primarily a wholesaler (i.e., its customers are typically shops that sell the signs to end customers). 1. Approximately 100 customer orders are placed per day via the internet (average of 10 signs each). Orders go directly into the production control system. Production is based on a monthly MRP schedule rather than as orders are placed. 2. Each sign requires a cut block of wood and possibly a yard stake (30% of signs) or fabric chain to hang it on a wall (15% of signs). Orders are placed weekly to different suppliers for each of these supplies (2 week lead time). 3. Upon receipt of supplies, they are put into a raw materials inventory where sit on average 4 days. 4. The background color is painted onto the signs. Time per sign is 30+NORM(30,7) seconds. The painting is done in batches of 20 and then the batch of signs are loaded onto a cart to dry. Drying takes an hour from time painted, although the carts sit on average 3 hours once full. A changeover in background color occurs once every 10-15 batches, and requires removing the previous paint container
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