Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Game number: 1 2 3 4 Objective is to learn how to manage: Capacity Lot size Variability Everything Changes you can make in the game:

Game number: 1234
Objective is to learn how to manage: Capacity Lot size Variability Everything
Changes you can make in the game:
1. Buy and sell machines? Yes Yes Yes Yes
2. Change priority at station 2? Yes Yes Yes Yes
3. Change lot size? No Yes Yes Yes
4. Change pricing contract? No No No Yes
5. Limit WIP? No No No Yes
6. Change re-order point and quantity? No No No Yes
7. Take out loan? (If yes, day available) No No No 50
Starting Conditions
1. Number of machines
At station 112315
At station 21215
At station 31224
Machine cost at station 1($ 000)100100505
Machine cost at station 2($ 000)100100505
Machine cost at station 3($ 000)100100505
2. Priority at station 2 FIFO FIFO FIFO FIFO
3. Kits/job (starting lot size =1 lot / job)60606060
Setup time at station 1, hours/lot 000.50
Setup time at station 2, hours/lot 00.1003
Setup time at station 3, hours/lot 000.56
4. Number of pricing contracts 1113
Contract 1: max. revenue per order, $ 4004005001000
Contract 1: quoted/max lead time, days 0.2/0.40.05/0.150.4/0.710/15
Contract 2: max. revenue per order, $ ---1500
Contract 2: quoted/max lead time, days ---2/3
Contract 3: max. revenue per order, $ ---1500
Contract 3: quoted/max lead time, days ---1/1.5
5. WIP limit 50505050
6. Re-order point, kits 000800
Re-order quantity, kits 1201201201200
Lead time for raw materials order, days 0004
Cost of raw materials per kit, $ 00010
Fixed order cost, $ 0005000
Holding Cost, %/yr.(excluding interest)00090
7. Interest rate gained on cash, %/ yr 00010
Debt initial cost (% of debt incurred)---5
Debt interest rate, %/ yr ---20
Demand (if trend, see note below)
Is there a trend in the Demand? Yes Yes No Yes
(See note below or on next page)(1)(1)(2)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Time Management For Writers

Authors: Katie Forrest

1st Edition

1711795860, 978-1711795867

More Books

Students also viewed these General Management questions