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A manufacturing company has an order for 5 0 0 units of a product for delivery at the end of day 1 3 0 .

A manufacturing company has an order for 500 units of a product for delivery at the end of day 130. The
product consists of three components. Components B and C form the subassembly. Subassembly and
component A form the final assembly. Component A, B and C are machined in the manufacturing shops A,
B and C of the company. No setup is required for the operations except the second operation of component
B. This setup takes 4 hours. Material is available for all parts. The following are the standard times for each
operation of a lot of 500 units.
(a) Draw a backward schedule under the following conditions. When must components A,B, and C be
started to meet the delivery date?
Each operation of every component is processed by a different machine in the manufacturing shops.
All parts move in one lot of 500 units.
(b) Suppose that the company wants to reduce the total manufacturing lead time as much as possible. For
that purpose, the company wants to use operations overlapping for one of the two components A and B.
Assume that the whole lot of 500 units is divided into two sublots. Which component should be selected?
What should be the size of each sublot? What will be the new total manufacturing lead time?
(c) Suppose that the company wants to reduce the total manufacturing lead time as much as possible. For
that purpose, the company wants to use operations splitting for the first operation of either component A
or component B, using one extra machine. Which component should be selected? What will be the new
total manufacturing lead time?
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