Final 2017 Solution
Final 2017 Solution
Final 2017 Solution
[PRE5323]
2016 - 2017
Planning of Factories and Production Processes
Final Exam Solution
2016-2017
Question 1:
No. of workers needed in O.T.= (Total Demand – R.T. Productivity of 20 Worker)/O.T. Productivity
The 92 operators needed will be distributed through the high demand rate months (Jul. To Nov.).
Month 1 2 3 4 5 6 7 8 9 10 11 12 ∑
Net Demand (units) 200 230 190 170 200 220 220 220 260 260 240 220 2630
# R.T. Operators 20 20 20 20 20 20 20 20 20 20 20 20 240
# O.T. Operators 0 0 0 0 0 0 20 20 20 20 12 0 92
R.T. Productivity (units) 200 200 200 200 200 200 200 200 200 200 200 200 2400
O.T. Productivity (units) 0 0 0 0 0 0 50 50 50 50 30 0 230
Total Productivity (units) 200 200 200 200 200 200 250 250 250 250 230 200 2630
Inv. (units) 0 0 0 10 10 0 20 50 40 30 20 0 180
Back Order (units) 0 30 20 0 0 10 0 0 0 0 0 0 60
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = (240 ∗ 160 ∗ 20) + (92 ∗ 40 ∗ 20) + (180 ∗ 8) + (60 ∗ 15) = $843,940/𝑦𝑒𝑎𝑟
Level aggregate plan is not suitable because the demand is not constant over the months of the year.
Question 2:
(a) The bottleneck is “Pressing”, so adding one more pressing machine to double its capacity. Therefore;
Production capacity will be 22.5 units.
1
Shearing 2 Pressing Welding Painting Packing
(20 Mins.) (30 Mins.) (15 Mins.) (12 Mins.) (6 Mins.)
(b)
Question 3:
12
F
45 11 10
A B C
12
G 8 8
J K
50 12
15
D H
E
12
I
Element A D E B C F G H I J K
P.W. 106 105 90 61 51 28 28 28 28 16 8
2
∑Idle Time = 32 Sec.
Performance = (((54*4)-(21))/(54*4))*100%=90.3%.
Question 4:
(a) Inventory represents the resources being held for use or sale. Maintaining inventories is necessary for
smoothing and completing business or other processes such as processes of manufacturing,
industrial, wholesaling, retailing, building, maintenance, grocery, etc.
Different models were developed to solve the inventory problems. These models aim at determining
the level of inventory that balances the cost capital, resulting from holding excessive inventory
against the penalty cost resulting from shortage. The characteristics and complexity of an inventory
model depends on the various parameters of the inventory system.
The inventory models various between periodic and continuous modes. …………….
2𝐴𝐷 2∗60∗24,000 𝑗𝑎𝑟
(b) 𝑄 ∗ = √ =√ = 6000 𝑚𝑜𝑛𝑡ℎ.
ℎ 0.08
∗)
𝐷 𝑄∗
𝑇𝐶(𝑄 = 𝐴 ∗ + ℎ = $480/𝑚𝑜𝑛𝑡ℎ
𝑄 2
𝐷 5000
𝑇𝐶(𝑄 = 5,000) = 𝐴 +ℎ = $488/𝑚𝑜𝑛𝑡ℎ
5000 2
(i) Penalty Cost = 𝑇𝐶(𝑄 = 5,000) - 𝑇𝐶(𝑄 ∗ ) = $8/𝑚𝑜𝑛𝑡ℎ
24000 3000
𝑇𝐶(𝑄 = 3,000) = 𝐴 ∗ + 0.08 ∗ = $480/𝑚𝑜𝑛𝑡ℎ
3000 2
(ii) A=$45/order
Question 5: