Problem 1: JIT Setup Cost and Time Suppose that Roger, a production manager, is trying to...
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Problem 1: JIT Setup Cost and Time Suppose that Roger, a production manager, is trying to run JIT. The product Annual Demand is 300,000 units, with 250 working days in a year, which means daily demand is 1200. The desired lot size will be 1200/3 400 for Q. His production line can produce 2400 units per day. Holding cost is $30/unit. a) What will his setup cost be for one setup? b) What will his permitted setup time be (in hours), if the wage rate is $20 for one employee? Problem 1: JIT Setup Cost and Time Suppose that Roger, a production manager, is trying to run JIT. The product Annual Demand is 300,000 units, with 250 working days in a year, which means daily demand is 1200. The desired lot size will be 1200/3 400 for Q. His production line can produce 2400 units per day. Holding cost is $30/unit. a) What will his setup cost be for one setup? b) What will his permitted setup time be (in hours), if the wage rate is $20 for one employee?
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a To calculate the setup cost for one setup we can use the economic production quantity EPQ model Th... View the full answer
Related Book For
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
Posted Date:
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