Pressure-Comp Company is air compressor manufacturer in Turkey. Company has five main compressor types which aditioning units. Parts are manufactured in Machining Shop of the company and then assembled in the 1 of 3 tent. In the last ten years, international demand for compressor units have been increased more than the capacity of the current factory, Past ten years' demand figures for five compressor types are provided in the following table. Company wants to build a new factory whose capacity should be capable to satisfy expected demand for the next 10 years Type-4 Type-5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Type-1 100,000 110,000 95.000 110,000 100,000 95.000 105.000 100,000 105.000 95,000 Type-2 120,000 125,000 140,000 150,000 170,000 200,000 190,000 210,000 230,000 235,000 Type-3 78,000 95,000 120.000 95.000 75,000 95.000 120,000 100,000 85.000 105,000 48,000 52,000 56,000 65,000 70,000 76,000 90,000 102,000 50,000 60,000 72,000 90,000 105,000 Company completed the Preliminary Feasibility study concluded that the new factory should be built. After the evaluation of alternative regions in Turkey, Marmara region is selected as the most suitable region. East region of the Marmara Sea is selected as more suitable for location and five alterative sites been determined, Bursa, Gemlik, Yalova, Glck and Izmit. Preliminary study results shows that required arca for the new facility is approximately 125,000 ft and for running the facility, large quantities of water required which should be at least 20000 m per week. In each alternative location there is a well which have different water supply capacity per month, provided in the following table. If the present well in the alternative site is not sufficient, the company can also purchase water from the local municipality for a price of $10 per m.but company doesn't want to pay more than $1 million for annual water use. The company can pay at most $10 million for annual rent of the land for the facility, where monthly land rents of sites are provided in the following table. The two critical three objective and four subjective factors that management wishes to incorporate in its decision making studies are summarized in below table. Community Subjective Ease of Labor Transportation Union 3 Location Support Services Critical Water Supply Land m month) Area 2 73000 125.000 75009 120.000 70000 130.000 2000 125.000 30000 122.000 Bursa Gemlik Yalova GO lamit Land Rent 15 6.5 5 55 6 7 Objective Labor Energy TAX Cost Cost 151.000 51000 (51 000 1850 900 200 1500 800 250 17.00 900 230 2000 20 1400 850 180 Anitude 04 05 06 04 07 07 02 07 075 91 04 09 56 Every compressor unit is consists of three main subassemblies (SAI, SA2, and SA3) and other parts obtained through Supply Chain by JIT Subassemblies are manufactured in the Machine Shop which will be designed as process layout. Each of five compressor types requires different number of subassemblies. Product trees of compresses are given below. These subassemblies are manufactured by applying 5 different processes by machines: A.B.C.D. ad E A summary of the processing sequences for subassemblies, machine properties and requirements are given in the tables below. Comprar Compressed SA (1) SA 2 (1) SAD SA10) SA 20 SA) SA SA 2) Con gws SA (1) SA 20) SAJC SA 11 5420 8430 Subassembly SAI SA2 SAJ Processing Sequence ABCD BACE ACIDE Machine B Machine Machine E Machine A 0.1 Machine 0.14 0.13 0.15 0.15 0.15 0.14 2.13 0.13 0.13 0.13 Standard time for SA 1 (min/unit) Standard time for SA 2 (min/unit) Standard time for SA 3 (min/unit Scrap Estimate for SAI Serap Estimate for SAZ (%) Serap Estimate for SA3 5 4 6 3 5 3 4 6 10 7 5 7 2 91 95 85 2000 4 80 ft 90 95 2000 3 Hist. Efficiency (%) Reliability Factor (%) Hours Av. per year Personnel Requirement Space Requirement Same raw material is used to produce all three types of subassemblies and it delivered to the factory in 15 # boxes and each box contains 2 units. While stocking, only 5 boxes can be placed on top of each other. Accounting department 2100 90 2000 4 70 93 2000 33 SA 65 reported that, ordering cost is $1200 per order, purchasing cost is $100 per unit, and annual inventory holding cost is 15% of the unit cost for this raw material. After subassemblies have manufactured in the Machine Shop, they sent to the assembly line to be assembled into the compressor units. Precedence diagram of the assembly processes is available below with times. Precedence diagram is same for all types of compressors and each of them will be assembled on a dedicated line. For each task 2 workers are employed and extra 1 worker is required for each work station for material handling. Each workstation is expected to be 300 ft' and available time in an assembly line is 2000 hrs/year. Task B D E F G H Time (min) Description 15 Assemble Frame 7 per SAL Mount SAI 19 Assemble motor housing 8 Mount motor housing in frame 4 per SA2 Attach SA2 7 Assemble and attach safety grill 7 per SA3 Attach SA 3 10 Test Predecessors None A None A.C D E B F G Assembled compressor units are sent to the warehouse and wait for shipment Company uses the same shipment quantity that they use to purchase Raw Material (EOQ). Compressors shipped from the factory in 10 ft boxes, in each box only one unit can be placed and at most 2 boxes can be placed on top of each other. Company's Board of Executives decides that: The weight of subjective factors 2 times as important as that of objective factors, Planned facility would have six departments: Machine Shop, Assembly Department, Shipping and Receiving Warehouse, Offices, Rest Rooms, Food Service. For running the company administrative personnel is required, which is one for each twenty of other workers. Half of the workers are women, Meal will served in two shifts and each shift will be 30 minutes. Employees will attend work with the company bus service. Pressure-Comp Company is air compressor manufacturer in Turkey. Company has five main compressor types which aditioning units. Parts are manufactured in Machining Shop of the company and then assembled in the 1 of 3 tent. In the last ten years, international demand for compressor units have been increased more than the capacity of the current factory, Past ten years' demand figures for five compressor types are provided in the following table. Company wants to build a new factory whose capacity should be capable to satisfy expected demand for the next 10 years Type-4 Type-5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Type-1 100,000 110,000 95.000 110,000 100,000 95.000 105.000 100,000 105.000 95,000 Type-2 120,000 125,000 140,000 150,000 170,000 200,000 190,000 210,000 230,000 235,000 Type-3 78,000 95,000 120.000 95.000 75,000 95.000 120,000 100,000 85.000 105,000 48,000 52,000 56,000 65,000 70,000 76,000 90,000 102,000 50,000 60,000 72,000 90,000 105,000 Company completed the Preliminary Feasibility study concluded that the new factory should be built. After the evaluation of alternative regions in Turkey, Marmara region is selected as the most suitable region. East region of the Marmara Sea is selected as more suitable for location and five alterative sites been determined, Bursa, Gemlik, Yalova, Glck and Izmit. Preliminary study results shows that required arca for the new facility is approximately 125,000 ft and for running the facility, large quantities of water required which should be at least 20000 m per week. In each alternative location there is a well which have different water supply capacity per month, provided in the following table. If the present well in the alternative site is not sufficient, the company can also purchase water from the local municipality for a price of $10 per m.but company doesn't want to pay more than $1 million for annual water use. The company can pay at most $10 million for annual rent of the land for the facility, where monthly land rents of sites are provided in the following table. The two critical three objective and four subjective factors that management wishes to incorporate in its decision making studies are summarized in below table. Community Subjective Ease of Labor Transportation Union 3 Location Support Services Critical Water Supply Land m month) Area 2 73000 125.000 75009 120.000 70000 130.000 2000 125.000 30000 122.000 Bursa Gemlik Yalova GO lamit Land Rent 15 6.5 5 55 6 7 Objective Labor Energy TAX Cost Cost 151.000 51000 (51 000 1850 900 200 1500 800 250 17.00 900 230 2000 20 1400 850 180 Anitude 04 05 06 04 07 07 02 07 075 91 04 09 56 Every compressor unit is consists of three main subassemblies (SAI, SA2, and SA3) and other parts obtained through Supply Chain by JIT Subassemblies are manufactured in the Machine Shop which will be designed as process layout. Each of five compressor types requires different number of subassemblies. Product trees of compresses are given below. These subassemblies are manufactured by applying 5 different processes by machines: A.B.C.D. ad E A summary of the processing sequences for subassemblies, machine properties and requirements are given in the tables below. Comprar Compressed SA (1) SA 2 (1) SAD SA10) SA 20 SA) SA SA 2) Con gws SA (1) SA 20) SAJC SA 11 5420 8430 Subassembly SAI SA2 SAJ Processing Sequence ABCD BACE ACIDE Machine B Machine Machine E Machine A 0.1 Machine 0.14 0.13 0.15 0.15 0.15 0.14 2.13 0.13 0.13 0.13 Standard time for SA 1 (min/unit) Standard time for SA 2 (min/unit) Standard time for SA 3 (min/unit Scrap Estimate for SAI Serap Estimate for SAZ (%) Serap Estimate for SA3 5 4 6 3 5 3 4 6 10 7 5 7 2 91 95 85 2000 4 80 ft 90 95 2000 3 Hist. Efficiency (%) Reliability Factor (%) Hours Av. per year Personnel Requirement Space Requirement Same raw material is used to produce all three types of subassemblies and it delivered to the factory in 15 # boxes and each box contains 2 units. While stocking, only 5 boxes can be placed on top of each other. Accounting department 2100 90 2000 4 70 93 2000 33 SA 65 reported that, ordering cost is $1200 per order, purchasing cost is $100 per unit, and annual inventory holding cost is 15% of the unit cost for this raw material. After subassemblies have manufactured in the Machine Shop, they sent to the assembly line to be assembled into the compressor units. Precedence diagram of the assembly processes is available below with times. Precedence diagram is same for all types of compressors and each of them will be assembled on a dedicated line. For each task 2 workers are employed and extra 1 worker is required for each work station for material handling. Each workstation is expected to be 300 ft' and available time in an assembly line is 2000 hrs/year. Task B D E F G H Time (min) Description 15 Assemble Frame 7 per SAL Mount SAI 19 Assemble motor housing 8 Mount motor housing in frame 4 per SA2 Attach SA2 7 Assemble and attach safety grill 7 per SA3 Attach SA 3 10 Test Predecessors None A None A.C D E B F G Assembled compressor units are sent to the warehouse and wait for shipment Company uses the same shipment quantity that they use to purchase Raw Material (EOQ). Compressors shipped from the factory in 10 ft boxes, in each box only one unit can be placed and at most 2 boxes can be placed on top of each other. Company's Board of Executives decides that: The weight of subjective factors 2 times as important as that of objective factors, Planned facility would have six departments: Machine Shop, Assembly Department, Shipping and Receiving Warehouse, Offices, Rest Rooms, Food Service. For running the company administrative personnel is required, which is one for each twenty of other workers. Half of the workers are women, Meal will served in two shifts and each shift will be 30 minutes. Employees will attend work with the company bus service