A Company Can Produce a Part It Uses in an Assembly

question 136

Essay

A company can produce a part it uses in an assembly operation at the rate of 50 an hour.The company operates eight hours a day,300 days a year.Daily usage of the part is 300 parts.The company uses the part every day.The run size is 6,000 parts.The annual holding cost is $2 per unit,and setup cost is $100.
(i)How many runs per year will there be?
(ii)While production is occurring,how many parts per day are being added to inventory?
(iii)Assuming that production begins when there are no parts on hand,what is the maximum number of parts in inventory?
(iv)The machine is dedicated to this product.Every so often,preventive maintenance,which requires six working days,must be performed on it.Does this interrupt production cycles,or is there enough time between cycles to perform the maintenance? Explain.

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Empathizing Skill

The ability to understand and share the feelings of another, fostering better communication and relationships.

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The ability to effectively persuade or guide others to support specific viewpoints, decisions, or actions.

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A recurring theme or characteristic that takes precedence over others in a given context or system.

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