Comm 225

Winter 2007

SOLUTION: Assignment 3

Question 5.5
a)
Item
Code
B

Level
Code
1

Lead
Time
1

On
Hand
0

Safety
Stock
0

Already
Allocated
0

Lot
Size
LFL

-----------------------------------------------------------------------------Week Number:
1
2
3
4
5
6
7
8
-----------------------------------------------------------------------------Gross Requirements
0
0
80
60
0
220
0
80
Scheduled Receipts
40
0
0
0
0
0
0
0
Available
40
40
40
0
0
0
0
0
Net Requirements
0
0
40
60
0
220
0
80
Planned Order Receipts
0
0
40
60
0
220
0
80
Planned Order Releases
0
40
60
0
220
0
80
0
-----------------------------------------------------------------------------==============================================================================
Item
Code

Level
Code

Lead
Time

On
Hand

Safety
Stock

Already
Allocated

Lot
Size

C
1
2
40
0
0
25
-----------------------------------------------------------------------------Week Number:
1
2
3
4
5
6
7
8
-----------------------------------------------------------------------------Gross Requirements
0
0
40
30
0
110
0
40
Scheduled Receipts
0
0
0
0
0
0
0
0
Available
40
40
0
20
20
10
10
20
Net Requirements
0
0
0
30
0
90
0
30
Planned Order Receipts
0
0
0
50
0
100
0
50
Planned Order Releases
0
50
0
100
0
50
0
0
-----------------------------------------------------------------------------==============================================================================

Item
Code
D

Level
Code
1

Lead
Time
1

On
Hand
0

Safety
Stock
0

Already
Allocated
0

Lot
Size
MIN =

300 +

1

-----------------------------------------------------------------------------Week Number:
1
2
3
4
5
6
7
8
-----------------------------------------------------------------------------Gross Requirements
0
0
80
60
0
220
0
80
Scheduled Receipts
0
0
0
0
0
0
0
0
Available
100
100
20
260
260
40
40
260
Net Requirements
0
0
0
40
0
0
0
40
Planned Order Receipts
0
0
0
300
0
0
0
300
Planned Order Releases
0
0
300
0
0
0
300
0
-----------------------------------------------------------------------------==============================================================================
Item
Code
E

Level
Code
2

Lead
Time

On
Hand

2

0

Safety
Stock
0

Already
Allocated
0

Lot
Size
LFL

-----------------------------------------------------------------------------Week Number:
1
2
3
4
5
6
7
8
-----------------------------------------------------------------------------Gross Requirements
0
80
120
0
440
0
160
0
Scheduled Receipts
0
160
0
0
0
0
0
0
Available
80
0
0
0
0
0
0
Net Requirements
0
0
40
0
440
0
160
0
Planned Order Receipts
0
0
0
0
440
0
160
0
Planned Order Releases
40
0
440
0
160
0
0
0
-----------------------------------------------------------------------------==============================================================================

==============================================================================
PLANNED ORDER RELEASE SCHEDULE:
-----------------------------------------------------------------------------Week Number:
1
2
3
4
5
6
7
8
-----------------------------------------------------------------------------Item Code:
**RUSH**
A
0
0
40
30
0
110
0
40
B
0
40
60
0
220
0
80
0
C
0
50
0
100
0
50
0
0
D
0
0
300
0
0
0
300
0
E
40
0
440
0
160
0
0
0
-----------------------------------------------------------------------------==============================================================================
b)
Since item C does not use any other item only the MRP matrix for item C will change as
follows :
Item
Code
C

Level
Code
1

Lead
Time
2

On
Hand
40

Safety
Stock
10

Already
Allocated
20

Lot
Size
25

-----------------------------------------------------------------------------Week Number:
1
2
3
4
5
6
7
8
-----------------------------------------------------------------------------Gross Requirements
0
0
40
30
0
110
0
40
Scheduled Receipts
0
0
0
0
0
0
0
0
Available
10
10
20
15
15
5
5
15

2

Net Requirements
Planned Order Receipts
Planned Order Releases

0
0
50

0
0
25

30
50
0

10
25
100

0
0
0

95
100
50

0
0
0

35
50
0

------------------------------------------------------------------------------

Question 5.6
1) PLANNED ORDER RELEASE SCHEDULE:
-----------------------------------------------------------------------------Week Number:
1
2
3
4
5
6
7
8
-----------------------------------------------------------------------------Item Code:
**RUSH**
A
0
0
80
80
0
90
0
0
B
0
0
100
0
180
0
0
0
C
0
0
0
0
160
0
0
0
D
50
80
180
90
0
0
0
0

1) Only the schedules for B and D will change. The revised planned order releases of
these two itmes will be as follows:
PLANNED ORDER RELEASE SCHEDULE:
-----------------------------------------------------------------------------Week Number:
1
2
3
4
5
6
7
8
-----------------------------------------------------------------------------Item Code:
**RUSH**
B
0
0
120
0
180
0
0
0
D
70
80
180
90
0
0
0
0

Question 5.7
a) What are the main benefits of a JIT system?
The main benefits of a JIT system are:

1. Reduced levels of work-in-process inventories, purchased goods, and finished goods.
2. Reduced space requirements
3.

Increased quality and reduced scra and rework

4.

Reduced manufacturing lead times, faster throughput, flexibility.

b) What are the benefits of small lot size?
Small lot sizes: 1) reduce in-process inventory, reducing holding costs, space
requirements and clutter. 2) reduce inspection and re-work costs. 3) more flexibility in altering
the production mix.

c) Discuss vendor relations in JIT systems.
3

.
Vendors can play a significant role in the success of just-in-time systems. Converting
to, and operating under, a just-in-time system requires close cooperation between vendors
and buyers. In such systems, vendors become “team” members. Vendors are expected to
be flexible in delivery schedules, ship in small lot sizes, be reliable, have consistently
high quality, and assist in problem solving. Without good vendor relations, much of this
will not materialize. The following comparison between vendor relations in tranditional
and JIT systems further explains this relationship in JIT systems:
Factor
Importance of price
Length of relationship
Number of suppliers
Attitude towards
Location

Traditional
major factor, high emphasis
often short
many
adversarial
low importance

JIT
one of several factors
long-term
Few
Partner
nearness highly important

Some vendors may be hesitant about JIT buyers because of: the need to be flexible,
to deliver in small lot sizes, to be closely tied to the needs of the buyer, cost, time, etc.
Sometimes, being a JIT supplier means carrying inventories for suppliers.

Question 5.10
E:
12 +16 + 6 + 12 = 46 for one unit of A
5(46) = 230 for 5 units of A
F: 2 + 2 = 4 for one unit of A
5(4) = 20 for 5 units of A
Question 6.8
λ = 1/min.
µ = 0.4/min
i) 1) M=4
ρ = ¼(0.4)= 0.625
P0 = (0.07550+0.06847)/2=0.07199
Lq = (1)(0.4)(2.5)4(0.07199)/3!(1.6-1)2 = 0.52076
Wq = 0.52076/1 = 0.52076 minutes
Ws = 0.52076 + 1/0.4 = 3.02076 minutes
2) Wa = 1/(1.6-1) = 1.6667, Pw = 0.52076/1.6667 = 0.312456
ii) For M = 4, Ws = 3.02 > 3. So we take M = 5:
ρ = 1/5(0.4) = 0.5
P0 = 0.0801

4

Lq = (1)(0.4)(2.5)5(0.0801)/4!(2-1)2 = 0.130371
Wq = 0.130371 /1 = 0.130371 minutes
Ws = 0.130371 + 1/0.4 = 2.63 minutes < 3. So the minimum number of servers is 5.

Question 6.9
Model 1
a) Average number of trucks waiting = 9.09091
Average time spent at the weighing station = 0.05 8-hr day or 24 minutes
Average waiting time = 0.04545 8-hr day or 21.818 minutes = 21
minutes 49
seconds.
b) Four or more trucks in waiting line means 5 or more in the system. This equals
1–P<5 = (200/220)5 = 0.6209
c) Currently the time spent by a truck at the weighing station is 24 minutes, which
is 24 – 15 = 9 minutes above the limit acceptable for truch drivers. This costs
9(10000) = 90000. With a new set of scales the arrival rate will be split, i.e. 100
trucks/8-hr day for each set of scale. The average time a truck spends in the
system is equal to 0.008333 8-hr day or 4 minutes. Thus there will be no cost
because of trucks avoiding the weighing station. The cost of new set of scales is
50000 and so there will be net saving of 90000 – 50000 = $40000. Hence the
scales should be installed.
Question 6.10
Model 1
First system:
Average time in the system = 1/(5-2) = 1/3 min
Since there are on average two arrivals per minute,
Average cost of waiting = 2(1/3)(18/60) = .2 per minute
Cost of operating = 10/60 = .17 per minute
Total cost = $ 0.37 per minute
Second system
Average time in the system = 1/(8-2) = 1/6 min
Average cost of waiting = 2(1/6)(18/60) = 0.1 per minute
Cost of operating = 20/60 = .33 per minute
Total cost = $ 0.43 per minute.
Choose the first system.
Question 6.11

5

a) Arrival rate=48/hr Service rate = 40/hr
Since arrival rate is bigger than service rate, M cannot be 1.
Use Model 3.
For M=2, P0 = 0.25 < 0.5
Lq = 0.675, Wq = 0.675/48 = 0.01406 hr = 0.84 min < 1.
Hence to meet the policy two servers will be sufficient.
b)
Model 2
Arrival rate=40/hr
Service rate = 60/hr
Lq = 2/3
Wq = 2/3(40) = 1/60 hr = 1 min
P0 = 1- 40/60 = 1/3
Probability of finding the machine in use = 2/3
Since Wq < 1 and P0 < 0.5, the requirements are met.

6

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.