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Cummins makes large diesel engines that are configured to customized customer specifications. This means when they get a customer order they run a MRP in
Cummins makes large diesel engines that are configured to customized customer specifications. This means when they get a customer order they run a MRP in which components are ordered based on the configuration. You do some digging and find that the turbo component manufactured at a Cummins subassembly plant in Raleigh, North Carolina before it is shipped to Columbus, Indiana for final assembly is the bottleneck that most often delays final production. With the turbo subassembly, there are three key components flywheels injectors, and orings that all must be available before turbo manufacturing can begin. A depiction of the supply chain is below along with lead time data including transportation for each part. Use this data to create a simulation in Excel with simulation of the average lead time from order by a customer to manufacturing of the final engine if there is no inventory available for any of the components to begin manufacturing of the turbo subassembly. You may allow decimal places for any simulated lead times and please report your final estimate of total lead time from your simulation to decimal place.Flywheel
Normal with mean LT of
days and standard
deviation of days
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