Professional Documents
Culture Documents
FINAL
FINAL
© 2014
© 2014
Pearson
Pearson
Education
Education 8-2
Types of Layout
1. Office layout
2. Retail layout
3. Warehouse layout
4. Fixed-position layout
5. Process-oriented layout
6. Work-cell layout
7. Product-oriented layout
Figure 9.1
© 2014 Pearson Education VIRTUAL COMPANIES - MAJOR TREND 8-5
Types of Layout p.394
Figure 9.2
© 2014 Pearson Education 8-7
Types of Layout p.394
E 11 A
F 3 C, D
G 7 F
H 11 E
I 3 G, H
Total time 65
B 11 A
C 5 B
Figure 9.12
D 4 B
5
E 11 A
C
F 3 C, D 10 11 3 7
G 7 F
A B F G
4
3
H 11 E D
11 11 I
I 3 G, H
E H
Total time 65
Minimum number
of workstations
= 65 / 12
=5.42, or 6 stations
© 2014 Pearson Education 8 - 15
Wing Component Example
Layout Heuristics That May Be Used to Assign Tasks
TABLE 9.3
to Workstations in Assembly-Line Balancing
1. Longest task time From the available tasks, choose the
task with the largest (longest) task time
2. Most following tasks From the available tasks, choose the
task with the largest number of following
tasks
3. Ranked positional From the available tasks, choose the
weight task for which the sum of following task
times is the longest
4. Shortest task time From the available tasks, choose the
task with the shortest task time
5. Least number of From the available tasks, choose the
following tasks task with the least number of subsequent
tasks
© 2014
© 2014
Pearson
Pearson
Education
Education 8 - 19
Measuring Supply-Chain
Performance p.485
▶ Assets committed to inventory
Percentage Total inventory investment
invested in = x 100
inventory Total assets
TABLE 11.5
Inventory as Percentage of Total Assets
(with examples of exceptional performance)
Manufacturer (Toyota 5%) 15%
Wholesale (Coca-Cola 2.9%) 34%
Restaurants (McDonald’s .05%) 2.9%
Retail (Home Depot 25.7%) 28%
► Inventory investment
► Average of several periods
► Ending inventory
Inventory 14.2
turnover = 1.69
= 8.4
► For PepsiCo
© 2014
© 2014
Pearson
Pearson
Education
Education 8 - 26
Inventory Models for
Independent Demand
objective: Minimize total costs
D
= S D
Q Annual setup cost = S
Q
© 2014 Pearson Education 8 - 28
Minimizing Costs
Q = Number of pieces/units per order
Q* = Optimal number of pieces per order (EOQ)
D = Annual demand in units for the inventory item
S = Setup or ordering cost for each order
H = Holding or carrying cost per unit per year
Annual holding cost = ( )
x (Holding cost per unit per year)
Q
= H
2 Q
Annual holding cost = H
2
© 2014 Pearson Education 8 - 29
Minimizing Costs
Q = Number of pieces/units per order
Q* = Optimal number of pieces per order (EOQ)
D = Annual demand in units for the inventory item
S = Setup or ordering cost for each order
H = Holding or carrying cost per unit per year
D Q H
S = ç ÷H
Q* è2ø 2DS
Q =
*
2DS
Q* =
H
2(1,000)(10)
Q =*
= 40,000 = 200 units
0.50
Expected =N = =
D
number of =
orders Q *
1,000
N= = 5 orders per year
200
250
T= = 50 days between orders
5
D Q
TC = S + H + PD
Q 2
=dxL
D
d=
Number of working days in a year
D
d=
Number of working days in a year
= 8,000/250 = 32 units
ROP = d x L
= 32 units per day x 3 days = 96 units
= 32 units per day x 4 days = 128 units
t Time
© 2014 Pearson Education 8 - 38
Production Order Quantity Model
Q = Number of pieces per order D = Annual demand in units
p =Daily production rate
d = Daily demand/usage rate
H = Holding cost per unit per year
t = Length of the production run in days
= pt – dt
Maximum = –
Total produced during the
- Total used during the
inventory level production run production run
= pt – dt
Maximum inventory Q Q d
level =p –d =Q 1– p
p p
Setup cost = ( D / Q) S
Holding cost = 12 HQ1 d p
2 DS
Q *
H 1 d p
p
2DS
Q *p =
( )
H éë1- d p ùû
2(1,000)(10)
Q =
*
0.50éë1- (4 8)ùû
p
20,000
= = 80,000
0.50(1 2)
= 282.8 hubcaps, or 283 hubcaps
© 2014 Pearson Education 8 - 44
prob 12.17 p.545
t = 300 days
D = 12000/year a. Optimal size of production run:
p = 100/day
S = $50
2 DS
P = $1 Q*p d = D/t
H = $ 0.1 H 1 d p
c. Setup cost = ( D / Q) S
b. Holding cost = 12 HQ1 d p
2DS
Q =
*
IP
Because unit price varies, holding cost (H) is
expressed as a percent (I) of unit price (P)
© 2014 Pearson Education 8 - 46
EXAMPLE 9 P.529
P = $5
S = $49
D = 5000
I = 0.2
IP
2(5,000)(49)
Q1* = = 700 cars/order
(.2)(5.00)
2(5,000)(49)
Q2* = = 714 cars/order
(.2)(4.80)
2(5,000)(49)
Q3* = = 718 cars/order
(.2)(4.75)
© 2014 Pearson Education 8 - 48
Quantity Discount Example
Calculate Q* for every discount 2DS
Q =
*
IP
2(5,000)(49)
Q1* = = 700 cars/order
(.2)(5.00)
2(5,000)(49)
Q2* = = 714 cars/order
(.2)(4.80)
1,000 — adjusted
2(5,000)(49)
Q3* = = 718 cars/order
(.2)(4.75)
© 2014 Pearson Education
2,000 — adjusted 8 - 49
Quantity Discount Example
TABLE 12.3 Total Cost Computations for Wohl’s Discount Store
© 2014
© 2014
Pearson
Pearson
Education
Education 8 - 51
Bills of Material
▶ List of components, ingredients, and
materials needed to make product
▶ Provides product structure
▶ Items above given level are called parents
▶ Items below given level are called
components or children
1 B(2) C(3)
Gross + Allocations
requirements
Total requirements
On Scheduled Net
– + = requirements
hand receipts
Available inventory
H
=> Q = 73
2DS
Q = *
=> Q = 73
Scheduled
receipts
Projected on
35 35 0 40 0 0 70 30 0 0 55
hand
Net
0 30 0 0 10 0 0 55 0
requirements
Planned order
70 80 0 85 0
receipts
Planned order
70 80 85
releases
© 2014
© 2014
Pearson
Pearson
Education
Education 8 - 68
Assignment Method P.633
TYPESETTER
JOB A B C
R-34 $11 $14 $ 6
S-66 $ 8 $10 $11
T-50 $ 9 $12 $ 7
Summary of Rules
Average
Average Number of Average
Completion Utilization Jobs in Lateness
Rule Time (Days) Metric (%) System (Days)
FCFS 15.4 36.4 2.75 2.2
WORK 3 7 10 8 5
CENTER 1
WORK 6 2 7 4 2
CENTER 2