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Assignment # 1

Production and Operations Management

Problem 1
Ken Gilbert owns the Knoxville Warriors, ...........................................................................

Solution:
Factor Weight Scores (MOBILE) Scores (JACKSON)
Incentive 0.40 80 60
Player satisfaction 0.30 20 50
Sports interest 0.20 40 90
Size of city 0.10 70 30

Let us first evaluate the MOBILE site by computing the weighted scores

Factor Weight Scores (MOBILE) Computation Weighted scores


(Weight×Score)
Incentive 0.40 80 0.40×800.40×80 32
Player satisfaction 0.30 20 0.30×200.30×20 6
Sports interest 0.20 40 0.20×400.20×40 8
Size of city 0.10 70 0.10×700.10×70 7
∑(Weighted scores) = 53

The total weighted score of MOBILE site is 53

Next, let us compute the weighted scores of the JACKSON site.

Factor Weight Scores (JACKSON) Computation Weighted scores


(Weight×Score)
Incentive 0.40 60 0.40×600.40×60 24
Player satisfaction 0.30 50 0.30×500.30×50 15
Sports interest 0.20 90 0.20×900.20×90 18
Size of city 0.10 30 0.10×300.10×30 3
∑(Weighted scores) 60

The total weighted score of the JACKSON site is 60

a) Which site should he select?


To conclude, the Jackson site has the highest total weighted score of 60.
Therefore, Ken Gilbert should move the Warriors south to Jackson (Mississippi).

b) Jackson just raised its incentive package, and the new score is 75. Why doesn’t this
impact your decision in part (a)?
Now the table will look like this,
Factor Weight Scores (JACKSON) Computation Weighted scores
(Weight×Score)
Incentive 0.40 75 0.40×750.40×75 30
Player satisfaction 0.30 50 0.30×500.30×50 15
Sports interest 0.20 90 0.20×900.20×90 18
Size of city 0.10 30 0.10×300.10×30 3
∑(Weighted scores) = 66

The new total weighted score of the JACKSON site is 66


To sum up, Jackson's total weighted average of 66 is still better than Mobile's total
weighted average of 53. So, the decision remains the same because Jackson's total
weighted score is higher than Mobile's score in part (a), even after Mobile's incentive
package has been increased.
Problem 2
Pan American Refineries, headquartered in Houston, must decide .......................................

Solution
Factor Weight Scores Scores Scores
(LOCATION A) (LOCATION B) (LOCATION C)
Proximity to port 5 100 80 80
facilities
Power-source 3 80 70 100
availability and cost
Workforce attitude and 4 30 60 70
cost
Distance from Houston 2 10 80 60
Community desirability 2 90 60 80
Equipment suppliers in 3 50 60 90
the area

Let us first compute the total weighted scores for LOCATION A

Factor Weight Scores Computation Weighted


(LOCATION A) scores
(Weight×Score)
Proximity to port 5 100 5×1005×100 500
facilities
Power-source availability 3 80 3×803×80 240
and cost
Workforce attitude and 4 30 4×304×30 120
cost
Distance from Houston 2 10 2×102×10 20
Community desirability 2 90 2×902×90 180
Equipment suppliers in 3 50 3×503×50 150
area
∑(Weighted scores) 1,210
The total weighted score of LOCATION A is 1,210

Next, let us compute the total weighted scores for LOCATION B.

Factor Weight Scores Computation Weighted


(LOCATION B) scores
(Weight×Score)
Proximity to port 5 80 5×805×80 400
facilities
Power-source availability 3 70 3×703×70 210
and cost
Workforce attitude and 4 60 4×604×60 240
cost
Distance from Houston 2 80 2×802×80 160
Community desirability 2 60 2×602×60 120
Equipment suppliers in 3 60 3×603×60 180
the area
∑(Weighted scores) 1,310

The total weighted score of LOCATION B is 1,310

Finally, the total weighted scores for the LOCATION C are computed as follows:

Factor Weight Scores Computation Weighted


(LOCATION C) scores
(Weight×Score)
Proximity to port 5 80 5×805×80 400
facilities
Power-source 3 100 3×1003×100 300
availability and cost
Workforce attitude and 4 70 4×704×70 280
cost
Distance from Houston 2 60 2×602×60 120
Community desirability 2 80 2×802×80 160
Equipment suppliers in 3 90 3×903×90 270
the area
∑(Weighted scores) 1,530
The total weighted score of LOCATION C is 1,530

c) Which site will be recommended based on total weighted scores?


To conclude, the LOCATION C has the highest total weighted scores of 1,530

d) If location B’s score for Proximity to port facilities was reset at 90, how would the
result change?
New table will look like this,

Factor Weight Scores Computation Weighted


(LOCATION B) (Weight×Score) scores
Proximity to port 5 90 5×905×90 450
facilities
Power-source 3 70 3×703×70 210
availability and cost
Workforce attitude and 4 60 4×604×60 240
cost
Distance from Houston 2 80 2×802×80 160
Community desirability 2 60 2×602×60 120
Equipment suppliers in 3 60 3×603×60 180
area
∑(Weighted scores) 1,360
=

The total weighted scores of LOCATION B is 1,360


The total weighted scores of the 3 locations before and now are as follows:

Locations TOTAL WEIGHTED SCORES TOTAL WEIGHTED SCORES


(BEFORE) (NOW)
LOCATION A 1,210 1,210
LOCATION B 1,310 1,360
LOCATION C 1,530 1,530
To conclude, the increase in location B’s score for Proximity to port facilities also increases its
total weighted scores, however, LOCATION C still has the highest total weighted scores.
Therefore, the result doesn't change the decision in part (a).

e) What score would location B need on Proximity to port facilities to change its
ranking?

Let us first identify the needed data in the problem.

GIVEN Amount

Highest total weighted score (HWS) 1,530

Total weighted scores of location B (WS) 1,310

Weight of Proximity to Port Facilities 5

Current score 80

Now let us find the computed value,

(𝑯𝑾𝑺 − 𝑾𝑺)
𝒚= + 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝒔𝒄𝒐𝒓𝒆
𝑾𝒆𝒊𝒈𝒉𝒕

(1530 − 1310)
𝑦= + 80
5

𝑦 = 124

Therefore, location B needed a score of more than 124 on Proximity to port facilities to
change its ranking and exceed the highest total weighted scores of 1,530.
Problem 3
Harden College is contemplating opening a European campus where students from the main
campus ..................................................................................................................................

Solution:
Factor Weight Scores Scores Scores Scores Scores
(THE (GREAT (ITALY) (BELGIUM) (GREECE)
NETHERL BRITAIN)
ANDS)
Stability of 0.20 5 5 3 5 4
government
Degree to 0.20 4 5 3 4 3
which the
population can
converse in
English
Stability of the 0.10 5 4 3 4 3
monetary
system
Communication 0.10 4 5 3 4 3
s infrastructure
Transportation 0.10 5 5 3 5 3
infrastructure
Availability of 0.10 3 4 5 3 5
historic/cultural
sites
Import 0.10 4 4 3 4 4
restrictions
Availability of 0.10 4 4 3 4 3
suitable
quarters
Let us first compute the total weighted scores for THE NETHERLANDS
Factor Weight Scores (THE Computation Weighted
NETHERLANDS) scores
(Weight×Score)
Stability of government 0.20 5 0.20×50.20×5 1
Degree to which the 0.20 4 0.20×40.20×4 0.80
population can converse
in English
Stability of the monetary 0.10 5 0.10×50.10×5 0.50
system
Communications 0.10 4 0.10×40.10×4 0.40
infrastructure
Transportation 0.10 5 0.10×50.10×5 0.50
infrastructure
Availability of 0.10 3 0.10×30.10×3 0.30
historic/cultural sites
Import restrictions 0.10 4 0.10×40.10×4 0.40
Availability of suitable 0.10 4 0.10×40.10×4 0.40
quarters
∑(Weighted scores) 4.30
The total weighted scores of THE NETHERLANDS is 4.30

Next, let us compute the total weighted scores for GREAT BRITAIN.
Factor Weight Scores (GREAT Computation Weighted
BRITAIN) scores
(Weight×Score)
Stability of government 0.20 5 0.20×50.20×5 1
Degree to which the 0.20 5 0.20×50.20×5 1
population can converse in
English
Stability of the monetary 0.10 4 0.10×40.10×4 0.40
system
Communications 0.10 5 0.10×50.10×5 0.50
infrastructure
Transportation infrastructure 0.10 5 0.10×50.10×5 0.50
Availability of 0.10 4 0.10×40.10×4 0.40
historic/cultural sites
Import restrictions 0.10 4 0.10×40.10×4 0.40
Availability of suitable 0.10 4 0.10×40.10×4 0.40
quarters
∑(Weighted scores) 4.60
The total weighted scores of GREAT BRITAIN is 4.60

Next, let us compute the total weighted scores for ITALY.


Factor Weight Scores Computation Weighted
(ITALY) scores
(Weight×Score)
Stability of government 0.20 3 0.20×30.20×3 0.60
Degree to which the population 0.20 3 0.20×30.20×3 0.60
can converse in English
Stability of the monetary system 0.10 3 0.10×30.10×3 0.30
Communications infrastructure 0.10 3 0.10×30.10×3 0.30
Transportation infrastructure 0.10 3 0.10×30.10×3 0.30
Availability of historic/cultural 0.10 5 0.10×50.10×5 0.50
sites
Import restrictions 0.10 3 0.10×30.10×3 0.30
Availability of suitable quarters 0.10 3 0.10×30.10×3 0.30
∑(Weighted scores) 3.20
The total weighted scores of ITALY is 3.20
Next, let us compute the total weighted scores for BELGIUM.
Factor Weight Scores Computation Weighted
(BELGIUM) scores
(Weight×Score)
Stability of government 0.20 5 0.20×50.20×5 1
Degree to which the population 0.20 4 0.20×40.20×4 0.80
can converse in English
Stability of the monetary 0.10 4 0.10×40.10×4 0.40
system
Communications infrastructure 0.10 4 0.10×40.10×4 0.40
Transportation infrastructure 0.10 5 0.10×50.10×5 0.50
Availability of historic/cultural 0.10 3 0.10×30.10×3 0.30
sites
Import restrictions 0.10 4 0.10×40.10×4 0.40
Availability of suitable 0.10 4 0.10×40.10×4 0.40
quarters
∑(Weighted scores) 4.20
The total weighted scores of BELGIUM is 4.20
And lastly, the total weighted scores for GREECE are computed as follows:
Factor Weight Scores Computation Weighted
(GREECE) scores
(Weight×Score)
Stability of government 0.20 4 0.20×4 0.80
Degree to which the population 0.20 3 0.20×3 0.60
can converse in English
Stability of the monetary system 0.10 3 0.10×3 0.30
Communications infrastructure 0.10 3 0.10×3 0.30
Transportation infrastructure 0.10 3 0.10×3 0.30
Availability of historic/cultural 0.10 5 0.10×5 0.50
sites
Import restrictions 0.10 4 0.10×4 0.40
Availability of suitable quarters 0.10 3 0.10×3 0.30
∑(Weighted scores) 3.50
The total weighted score of GREECE is 3.50

Locations Weighted average


THE NETHERLANDS 4.30
GREAT BRITAIN 4.60
ITALY 3.20
BELGIUM 4.20
GREECE 3.50

a) In which country should Harden College choose to set up its European campus?
The location with the highest total weighted scores is GREAT BRITAIN. Therefore,
Harden College should choose to set up its European campus in Great Britain.

b) How would the decision change if the “degree to which the population can converse
in English” was not an issue?

Factor Weig Total Total Total Total Total


ht weight weighte weighte weighte weighte
ed d d d d
scores scores scores scores scores
(THE (GREA (ITALY (BELGI (GREE
NETH T ) UM) CE)
ERLA BRITAI
NDS) N)
Stability of 0.20 1 1 0.60 1 0.80
government

Degree to 0.20 0 0 0 0 0
which the
population
can
converse in
English

Stability of 0.10 0.50 0.40 0.30 0.40 0.30


the
monetary
system

Communic 0.10 0.40 0.50 0.30 0.40 0.30


ations
infrastructu
re

Transporta 0.10 0.50 0.50 0.30 0.50 0.30


tion
infrastructu
re

Availability 0.10 0.30 0.40 0.50 0.30 0.50


of
historic/cul
tural sites

Import 0.10 0.40 0.40 0.30 0.40 0.40


restrictions
Availability 0.10 0.40 0.40 0.30 0.40 0.30
of suitable
quarters

∑(W 3.5 3.6 2.6 3.4 2.9


eight
ed sc
ores)

Problem 4
Hyundai Motors is considering three sites—A, B, and C—at which to locate a factory ......

Solution

Site Fixed cost per year Variable cost per unit

A $10,000,000 $2,500

B $20,000,000 $2,000

C $25,000,000 $1,000

Now let us compute for the crossover point for sites A and B

𝑭𝑪𝑨 + 𝑽𝑪𝑨 (𝒙) = 𝑭𝑪𝑩 + 𝑽𝑪𝑩 (𝒙)

$10,000,000 + $2,500𝑥 = $20,000,000 + $2,000𝑥

$500𝑥 = $10,000,000

𝑥 = $20,000

let us compute for the crossover point for sites B and C

𝑭𝑪𝑩 + 𝑽𝑪𝑩 (𝒙) = 𝑭𝑪𝑪 + 𝑽𝑪𝑪 (𝒙)


$20,000,000 + $2,000𝑥 = $25,000,000 + $1,000𝑥

$1,000𝑥 = $5,000,000

𝑥 = $5,000

For site A and C, the crossover point is computed as

𝑭𝑪𝑨 + 𝑽𝑪𝑨 (𝒙) = 𝑭𝑪𝑪 + 𝑽𝑪𝑪 (𝒙)

$10,000,000 + $2,500𝑥 = $25,000,000 + $1,000𝑥

$1500𝑥 = $15,000,000

𝑥 = $10,000

Using the computed crossover point for the 3 sites, let us construct the line graph for us to
determine the optimal range of the production for each site that gives the lowest cost.
a) For what values of volume, V, of production, if any, is site C a recommended site?

Based on the figure, the optimal range of production for site C is more than 10,000 units.

b) What volume indicates site A is optimal?

Based on the figure, the optimal range of production for site A is less than 10,000 units.

c) Over what range of volume is site B optimal? Why?


Based on the figure, there is no optimal range of production for site B because there is no
level of production in which site B provides the lowest cost. As shown, if the volume
level is less than 10,000, site A is optimal, but site C is preferable if it's more than 10,000.

Problem 5
The following table gives the map coordinates and the shipping loads ................................

Solution:
City Map Coordinate (X,Y) Shipping load
A (5, 10) 5
B (6, 8) 10
C (4, 9) 15
D (9, 5) 5
E (7, 9) 15
F (3, 2) 10
G (2, 6) 5

Let us now compute for the x-coordinate of the center of gravity.

∑𝒊 𝒙𝒊 𝐐𝒊
𝐱 − 𝐜𝐨𝐨𝐫𝐝𝐢𝐧𝐚𝐭𝐞 =
∑𝒊 𝑸𝒊

(5 × 5) + (6 × 10) + (4 × 15) + (9 × 5) + (7 × 15) + (3 × 10) + (2 × 5)


x − coordinate =
5 + 10 + 15 + 5 + 15 + 10 + 5

x − coordinate = 𝟓. 𝟏𝟓

Next, the y-coordinate of the center of gravity is computed as follows:

∑𝒊 𝒚𝒊 𝐐𝒊
𝐲 − 𝐜𝐨𝐨𝐫𝐝𝐢𝐧𝐚𝐭𝐞 =
∑𝒊 𝑸𝒊

y − coordinate
(10 × 5) + (8 × 10) + (9 × 15) + (5 × 5) + (9 × 15) + (2 × 10) + (6 × 5)
=
5 + 10 + 15 + 5 + 15 + 10 + 5

y − coordinate = 𝟕. 𝟑𝟏

Now, let us plot the x and y coordinates of the center of gravity, as well as the map coordinates
of the set of cities.
Central Hub
12

10

8
y-coordinate

0
0 2 4 6 8 10 12
x-coordinate

a) Near which map coordinates should the hub be located?

The center of gravity has map coordinate of (5.15, 7.31)

Therefore, the hub should be located near map coordinates (5.15, 7.31)

b) If the shipments from city A triple, how does this change the coordinates?
The shipments from city A triple.

City Map Coordinate (X,Y) Shipping load


A (5, 10) 15
B (6, 8) 10
C (4, 9) 15
D (9, 5) 5
E (7, 9) 15
F (3, 2) 10
G (2, 6) 5

Let us now compute for the x-coordinate of the center of gravity.

∑𝒊 𝒙𝒊 𝐐𝒊
𝐱 − 𝐜𝐨𝐨𝐫𝐝𝐢𝐧𝐚𝐭𝐞 =
∑𝒊 𝑸𝒊

x − coordinate
(5 × 15) + (6 × 10) + (4 × 15) + (9 × 5) + (7 × 15) + (3 × 10) + (2 × 5)
=
5 + 10 + 15 + 5 + 15 + 10 + 5
x − coordinate = 𝟓. 𝟏𝟑

Next, the y-coordinate of the center of gravity is computed as follows:

∑𝒊 𝒚𝒊 𝐐𝒊
𝐲 − 𝐜𝐨𝐨𝐫𝐝𝐢𝐧𝐚𝐭𝐞 =
∑𝒊 𝑸𝒊

y − coordinate
(10 × 15) + (8 × 10) + (9 × 15) + (5 × 5) + (9 × 15) + (2 × 10) + (6 × 5)
=
5 + 10 + 15 + 5 + 15 + 10 + 5

y − coordinate = 𝟕. 𝟔𝟕

Now, let us plot the x and y coordinates of the center of gravity, as well as the map coordinates
of the set of cities.

Central Hub
12

10

8
y-coordinate

0
0 2 4 6 8 10 12
x-coordinate

The center of gravity has map coordinate of (5.13, 7.67)

Problem 6
A small rural county has experienced unprecedented growth. ..............................................
Solution:
Location Map Coordinate (X,Y) Number of students

North Park 4, 11 500

Jefferson 5, 2 300

Lincoln 8, 2 300

Washington 11, 6 200

Let us now compute for the x-coordinate of the center of gravity.

∑𝒊 𝒙𝒊 𝐐𝒊
𝐱 − 𝐜𝐨𝐨𝐫𝐝𝐢𝐧𝐚𝐭𝐞 =
∑𝒊 𝑸𝒊

(4 × 500) + (5 × 300) + (8 × 300) + (11 × 200)


x − coordinate =
500 + 300 + 300 + 200

x − coordinate = 𝟔. 𝟐𝟑

Next, the y-coordinate of the center of gravity is computed as follows:

∑𝒊 𝒚𝒊 𝐐𝒊
𝐲 − 𝐜𝐨𝐨𝐫𝐝𝐢𝐧𝐚𝐭𝐞 =
∑𝒊 𝑸𝒊

(11 × 500) + (2 × 300) + (2 × 300) + (6 × 200)


x − coordinate =
500 + 300 + 300 + 200

y − coordinate = 𝟔. 𝟎𝟖

a) What are the coordinates of the central location?


Now, let us plot the x and y coordinates of the centre of gravity, as well as the map coordinates
of the set of cities.

Central Hub
12

10

8
y-coordinate

0
0 2 4 6 8 10 12
x-coordinate

The center of gravity has map coordinate of (6.23, 6.08)

b) What other factors should be considered before building a school?

The following are some of the factors to consider before building a school:

• Other schools in the area


• Learning in a pleasant setting
• The area's tax foundation
• The fundamentals of future growth dynamics
• Today's and Tomorrow's Technology
• Measures to ensure safety and security
• Population

Chapter 9
Problem 1:
A Missouri job shop has four departments. ...........................................................................
Solution
The cost can be calculated by using this formula,
𝑪𝒐𝒔𝒕 = 𝑵𝒖𝒎𝒃𝒆𝒓 𝑶𝒇 𝑷𝒊𝒆𝒄𝒆𝒔 × 𝑫𝒊𝒔𝒕𝒂𝒏𝒄𝒆 × 𝑪𝒐𝒔𝒕 𝑷𝒆𝒓 𝑷𝒊𝒆𝒄𝒆
Work area Pieces Distances Cost per unit Cost
M M 0 0 0.50 0
M D 6 20 0.50 60
M F 18 12 0.50 108
M P 2 8 0.50 8
D M 0 0 0.50 0
D D 0 0 0.50 0
D F 4 6 0.50 12
D P 2 10 0.50 10
F M 0 0 0.50 0
F D 0 0 0.50 0
F F 0 0 0.50 0
F P 18 4 0.50 36
P M 0 0 0.50 0
P D 0 0 0.50 0
P F 0 0 0.50 0
P P 0 0 0.50 0
Total cost = 234

a) Determine cost of the current layout, Plan A, from the data above.
As the workpieces are total 100, then the cost will be of $23,400
b) One alternative is to switch those departments with the high loads, namely, finishing
(F) and plating (P), which alters the distance between them and machining (M) and
dipping (D), as follows:

Work area Pieces Distances Cost per unit Cost


M M 0 0 0.50 0
M D 6 20 0.50 60
M F 18 8 0.50 72
M P 2 12 0.50 12
D M 0 0 0.50 0
D D 0 0 0.50 0
D F 4 10 0.50 20
D P 2 6 0.50 6
F M 0 0 0.50 0
F D 0 0 0.50 0
F F 0 0 0.50 0
F P 18 4 0.50 36
P M 0 0 0.50 0
P D 0 0 0.50 0
P F 0 0 0.50 0
P P 0 0 0.50 0
Total cost = 206

As the workpieces are total 100, then the cost will be of $20,600
c) Marrs now wants you to evaluate Plan C, which also switches milling (M) and
drilling (D), below.

Work area Pieces Distances Cost per unit Cost


M M 0 0 0.50 0
M D 6 20 0.50 60
M F 18 10 0.50 90
M P 2 6 0.50 6
D M 0 0 0.50 0
D D 0 0 0.50 0
D F 4 8 0.50 16
D P 2 12 0.50 12
F M 0 0 0.50 0
F D 0 0 0.50 0
F F 0 0 0.50 0
F P 18 4 0.50 36
P M 0 0 0.50 0
P D 0 0 0.50 0
P F 0 0 0.50 0
P P 0 0 0.50 0
Total cost = 220

As the workpieces are total 100, then the cost will be of $22,000
d) Which layout is best from a cost perspective?
From the cost perspective, the company should choose layout B.

Problem 2
Roy Creasey Enterprises, a machine shop, is planning .........................................................
Solution
Work area Pieces Distances
1 1 0 0
1 2 100 20
1 3 50 40
1 4 0 20
1 5 0 40
1 6 50 60
2 1 25 0
2 2 0 0
2 3 0 20
2 4 50 40
2 5 0 20
2 6 0 40
3 1 25 0
3 2 0 0
3 3 0 0
3 4 0 60
3 5 50 40
3 6 0 20
4 1 0 0
4 2 25 0
4 3 0 0
4 4 0 0
4 5 20 20
4 6 0 40
5 1 50 0
5 2 0 0
5 3 100 0
5 4 0 0
5 5 0 0
5 6 0 20
6 1 10 0
6 2 0 0
6 3 20 0
6 4 0 0
6 5 0 0
6 6 0 0

Problem 3
You have just been hired as the director of operations ..........................................................
Solution
Work center Loads Distance (Layout 1) Distance (Layout 2)
1&2 8 4 7
1&3 13 8 8
2&1 5 4 7
2&3 3 4 5
2&4 3 8 6
2&5 8 12 7
3&1 3 8 8
3&2 12 4 5
3&4 4 4 4
4&1 3 12 12
4&5 5 4 6
5&2 8 12 7
5&3 4 8 9
5&4 10 4 6
Let us now compute the movement cost of Layout 1
Movement cost is computed using the formula:
Movement cost=∑Load×Distance

Work center Load Distance Load × Distance


1&2 8 4 32
1&3 13 8 104
2&1 5 4 20
2&3 3 4 12
2&4 3 8 24
2&5 8 12 96
3&1 3 8 24
3&2 12 4 48
3&4 4 4 16
4&1 3 12 36
4&5 5 4 20
5&2 8 12 96
5&3 4 8 32
5&4 10 4 40
∑Load×Distance= 600
The movement cost of layout 1 is 600

let us compute the movement cost of Layout 2.


Work center Load Distance Load × Distance
1&2 8 7 56
1&3 13 8 104
2&1 5 7 35
2&3 3 5 15
2&4 3 6 18
2&5 8 7 56
3&1 3 8 24
3&2 12 5 60
3&4 4 4 16
4&1 3 12 36
4&5 5 6 30
5&2 8 7 56
5&3 4 9 36
5&4 10 6 60
∑Load×Distance 602
The movement cost of Layout 2 is 602
To conclude, the movement cost of layout 1 is less than that of layout 2.
Therefore, we recommend using kitchen layout 1 as it gives the minimum movement cost.

Problem 4
Stanford Rosenberg Computing wants to establish an ..........................................................
Solution
a) What is the cycle time?
Let's calculate the cycle time.
𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝒕𝒊𝒎𝒆 𝒂𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝒑𝒆𝒓 𝒅𝒂𝒚
𝑪𝒚𝒄𝒍𝒆 𝑻𝒊𝒎𝒆 =
𝑼𝒏𝒊𝒕𝒔 𝒓𝒆𝒒𝒖𝒊𝒓𝒆𝒅 𝒑𝒆𝒓 𝒅𝒂𝒚

3600 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =
180 𝑈𝑛𝑖𝑡𝑠
20 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =
𝑢𝑛𝑖𝑡
b) What is the theoretical minimum for the number of workstations that Rosenberg
can achieve in this assembly line?
𝚺𝒕𝒊𝒎𝒆 𝒇𝒐𝒓 𝒕𝒂𝒔𝒌 𝒊
𝑴𝒊𝒏𝒊𝒎𝒖𝒎 𝑵𝒖𝒎𝒃𝒆𝒓 𝑶𝒇 𝑾𝒐𝒓𝒌𝒔𝒕𝒂𝒕𝒊𝒐𝒏𝒔 =
𝒄𝒚𝒄𝒍𝒆 𝒕𝒊𝒎𝒆
60 seconds
𝑀𝑖𝑛𝑖𝑚𝑢𝑚 𝑁𝑢𝑚𝑏𝑒𝑟 𝑂𝑓 𝑊𝑜𝑟𝑘𝑠𝑡𝑎𝑡𝑖𝑜𝑛𝑠 =
20
𝑀𝑖𝑛𝑖𝑚𝑢𝑚 𝑁𝑢𝑚𝑏𝑒𝑟 𝑂𝑓 𝑊𝑜𝑟𝑘𝑠𝑡𝑎𝑡𝑖𝑜𝑛𝑠 = 3

c) Can the theoretical minimum actually be reached when workstations are assigned?
Problem 6
Sue Helms Appliances wants to establish an .........................................................................
Solution
Task Time (min) Immediate predecessor
A 10 -
B 12 A
C 8 A,B
D 6 B,C
E 6 C
F 6 D,E

a) What is the theoretical minimum for the smallest number of workstations that
Helms can achieve in this assembly line?
Let's calculate the cycle time.
𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝒕𝒊𝒎𝒆 𝒂𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝒑𝒆𝒓 𝒅𝒂𝒚
𝑪𝒚𝒄𝒍𝒆 𝑻𝒊𝒎𝒆 =
𝑼𝒏𝒊𝒕𝒔 𝒓𝒆𝒒𝒖𝒊𝒓𝒆𝒅 𝒑𝒆𝒓 𝒅𝒂𝒚
3600 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =
5 𝑈𝑛𝑖𝑡𝑠
720 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =
𝑢𝑛𝑖𝑡
𝚺𝒕𝒊𝒎𝒆 𝒇𝒐𝒓 𝒕𝒂𝒔𝒌 𝒊
𝑴𝒊𝒏𝒊𝒎𝒖𝒎 𝑵𝒖𝒎𝒃𝒆𝒓 𝑶𝒇 𝑾𝒐𝒓𝒌𝒔𝒕𝒂𝒕𝒊𝒐𝒏𝒔 =
𝒄𝒚𝒄𝒍𝒆 𝒕𝒊𝒎𝒆
2880 seconds
𝑀𝑖𝑛𝑖𝑚𝑢𝑚 𝑁𝑢𝑚𝑏𝑒𝑟 𝑂𝑓 𝑊𝑜𝑟𝑘𝑠𝑡𝑎𝑡𝑖𝑜𝑛𝑠 =
720
𝑀𝑖𝑛𝑖𝑚𝑢𝑚 𝑁𝑢𝑚𝑏𝑒𝑟 𝑂𝑓 𝑊𝑜𝑟𝑘𝑠𝑡𝑎𝑡𝑖𝑜𝑛𝑠 = 4
b) Graph the assembly line, and assign workers to workstations. Can you assign
them with the theoretical minimum?

c) What is the efficiency of your assignment?


𝚺𝒕𝒊𝒎𝒆 𝒇𝒐𝒓 𝒕𝒂𝒔𝒌 𝒊
𝑬𝒇𝒇𝒆𝒄𝒊𝒆𝒏𝒄𝒚 =
𝒏𝒐. 𝒐𝒇 𝒘𝒐𝒓𝒌𝒔𝒕𝒂𝒕𝒊𝒐𝒏𝒔 × 𝒄𝒚𝒄𝒍𝒆 𝒕𝒊𝒎𝒆
2880
𝐸𝑓𝑓𝑒𝑐𝑖𝑒𝑛𝑐𝑦 =
5 × 720
𝐸𝑓𝑓𝑒𝑐𝑖𝑒𝑛𝑐𝑦 = 80%

Problem 7
Dr. Lori Baker, operations manager at Nesa Electronics,......................................................
Solution
Tasks Time (min) Immediate predecessor
A 3 -
B 6 -
C 7 A
D 5 A,B
E 22 B
F 4 C
G 5 F
H 7 D,E
I 1 H
J 6 E
K 4 G,I,J

a) Draw the precedence diagram.


b) If the daily (24-hour) production rate is 96 units, what is the highest allowable cycle
time?
𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝒕𝒊𝒎𝒆 𝒂𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝒑𝒆𝒓 𝒅𝒂𝒚
𝑪𝒚𝒄𝒍𝒆 𝑻𝒊𝒎𝒆 =
𝑼𝒏𝒊𝒕𝒔 𝒓𝒆𝒒𝒖𝒊𝒓𝒆𝒅 𝒑𝒆𝒓 𝒅𝒂𝒚
86400 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =
96 𝑈𝑛𝑖𝑡𝑠
900 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =
𝑢𝑛𝑖𝑡
c) If the cycle time after allowances is given as 10 minutes, what is the daily (24-hour)
production rate?
𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝒕𝒊𝒎𝒆 𝒂𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝒑𝒆𝒓 𝒅𝒂𝒚
𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 𝒓𝒂𝒕𝒆 =
𝑪𝒚𝒄𝒍𝒆 𝒕𝒊𝒎𝒆
86400 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
=
600 𝑠𝑒𝑐𝑜𝑛𝑑𝑠
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 = 144 𝑢𝑛𝑖𝑡𝑠
d) With a 10-minute cycle time, what is the theoretical minimum number of stations
with which the line can be balanced?
𝚺𝒕𝒊𝒎𝒆 𝒇𝒐𝒓 𝒕𝒂𝒔𝒌 𝒊
𝑴𝒊𝒏𝒊𝒎𝒖𝒎 𝑵𝒖𝒎𝒃𝒆𝒓 𝑶𝒇 𝑾𝒐𝒓𝒌𝒔𝒕𝒂𝒕𝒊𝒐𝒏𝒔 =
𝒄𝒚𝒄𝒍𝒆 𝒕𝒊𝒎𝒆
3000 seconds
𝑀𝑖𝑛𝑖𝑚𝑢𝑚 𝑁𝑢𝑚𝑏𝑒𝑟 𝑂𝑓 𝑊𝑜𝑟𝑘𝑠𝑡𝑎𝑡𝑖𝑜𝑛𝑠 =
600
𝑀𝑖𝑛𝑖𝑚𝑢𝑚 𝑁𝑢𝑚𝑏𝑒𝑟 𝑂𝑓 𝑊𝑜𝑟𝑘𝑠𝑡𝑎𝑡𝑖𝑜𝑛𝑠 = 5

e) With a 10-minute cycle time and six workstations, what is the efficiency?
𝚺𝒕𝒊𝒎𝒆 𝒇𝒐𝒓 𝒕𝒂𝒔𝒌 𝒊
𝑬𝒇𝒇𝒆𝒄𝒊𝒆𝒏𝒄𝒚 =
𝒏𝒐. 𝒐𝒇 𝒘𝒐𝒓𝒌𝒔𝒕𝒂𝒕𝒊𝒐𝒏𝒔 × 𝒄𝒚𝒄𝒍𝒆 𝒕𝒊𝒎𝒆
3000
𝐸𝑓𝑓𝑒𝑐𝑖𝑒𝑛𝑐𝑦 =
6 × 600
𝐸𝑓𝑓𝑒𝑐𝑖𝑒𝑛𝑐𝑦 = 83%
f) What is the total idle time per cycle with a 10-minute cycle time and six
workstations?
𝑰𝒅𝒍𝒆 𝒕𝒊𝒎𝒆 = (𝑨𝒄𝒕𝒖𝒂𝒍 𝒏𝒐. 𝒐𝒇 𝒘𝒐𝒓𝒌𝒔𝒕𝒂𝒕𝒊𝒐𝒏𝒔 × 𝑪𝒚𝒄𝒍𝒆 𝒕𝒊𝒎𝒆) − ∑𝑻𝒂𝒔𝒌 𝒕𝒊𝒎𝒆𝒔
𝐼𝑑𝑙𝑒 𝑡𝑖𝑚𝑒 = (6 × 600) − 3000
𝐼𝑑𝑙𝑒 𝑡𝑖𝑚𝑒 = 600 𝑠𝑒𝑐𝑜𝑛𝑑𝑠

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