1.

The Johnny Ho Manufacturing Company in Columbus, Ohio, is putting out four new

electronic components. Each of Ho’s four plants has the capacity to add one more prod-uct to its

current line of electronic parts. The unit- manufacturing costs for producing the different parts at

the four plants are shown in the accompanying table. How should Ho assign the new products to

the plants to minimize manufacturing costs?

Question from Book (15.5 one page 615)

Plant (1 to 4)

m
er as
Electronic Componet 1 2 3 4

co
eH w
C53 $0.10 $0.12 $0.13 0.11
C81 0.05 0.06 0.04 0.08

o.
D5 0.32 0.40 0.31 0.30
D44 rs e 0.17 0.14 0.19 0.15
ou urc
o

Solution:
aC s

PLANT
vi y re

Electronic Component 1 2 3 4

c53 0.1 0.12 0.13 0.11

ed d
ar stu

c81 0.05 0.06 0.04 0.08

d5 0.32 0.4 0.31 0.3

is

d44 0.17 0.14 0.19 0.15

Th
sh

PLANT

Electronic Component 1 2 3 4

c53 $0.00 $0.02 $0.03 $0.01

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 c81 $0.01 $0.02 $0.00 $0.03

d5 $0.02 $0.10 $0.01 $0.00

d44 $0.03 $0.00 $0.05 $0.01

The assignment is optimal and cost of assignment = 0.1+0.14+0.04+0.30 = $ 0.58

Or

Make the entries into spreadsheet in the manner shown below.

m
er as
1 2 3 4

co
A 0.1 0.12 0.13 0.11

eH w
B 0.05 0.06 0.04 0.08

o.
C 0.32 0.41 0.31 0.3
D 0.17rs e 0.14 0.19 0.15
ou urc
o

1 2 3 4
aC s

A 0 0 1 0
vi y re

B 1 0 0 0

C 0 0 0 1
ed d

D 0 1 0 0
ar stu

=SUM =SUM (E15:E18) =SUM (F15:F18) =SUM (G15:G18)

(D15:D18)
= = = =
is

1 1 1 1
Total cost
Th

=SUMPRODUCT(D15:G18,D8:G11)
sh

Make solver entries as:

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 m
er as
co
eH w
o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu

1 2 3 4
is

A 0.1 0.12 0.13 0.11

Th

B 0.05 0.06 0.04 0.08

C 0.32 0.41 0.31 0.3
D 0.17 0.14 0.19 0.15
sh

1 2 3 4

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 A 0 0 1 0 1 = 1

B 1 0 0 0 1 = 1

C 0 0 0 1 1 = 1

D 0 1 0 0 1 = 1

1 1 1 1

= = = =

1 1 1 1

Total

m
er as
0.62

co
eH w
o.
rs e
2. Leblanc Electronics, Inc., in Nashville, produces short runs of custom airwave scanners for the
ou urc
defense industry. You have been asked by the owner, Larry Leblanc, to reduce inventory by
o

introducing a kanban system. After several hours of analysis, you develop the following data for
aC s

scanner connec-tors used in one work cell.

vi y re

Question How many kanbans do you need for this connector?

ed d
ar stu

Daily Demand 1,000 connectors

Lead time 2 days

is

Safety stock ½ day

Th

Kanban size 500 connectors

sh

Question from book ( 16.1 ON PAGE 644)

Solution:

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 Leblanc Electronics, Inc.

CALCULATION OF NUMBER OF KANBAN NEEDED FOR THE SCANNER CONNECTOR

Daily Demand – 1000 connectors

Demand during lead time – 1000 connectors x 2 days = 2000 connectors

Safety Stock – 500 connectors i.e. 1000 connectors x ½ day (Half day’s demand)

Therefore, Max. level of inventory = 2000 + 500 = 2500 connectors

m
er as
Kanban Size – 500

co
eH w
Kanban needed for the connector = 2500/500 = 5

o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh

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