Chapter 3: Supply Chain Processes
14-11DQ
Explain the relationship between quality and productivity under the lean philosophy.
14-11OQ
Transmissions are delivered to the fabrication line four at a time. It takes one hour for transmissions to be delivered. Approximately four vehicles are produced each hour, and management has decided that 50 percent of expected demand should be maintained as safety stock. How many kanban card sets are needed?
14-12OQ
A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed?
14-8DQ
Explain how cards are used in a kanban system.
1OQ(b)
Question: What is the cost to inspect each unit?
6OQ (b)
Question: Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average 10 minutes to be processed. The service counter is staffed by only one clerk, Judy Gumshoes, who works eight hours per day. Assume Poisson arrivals and exponential service times.
b. How much time, on average, does a student spend waiting in line?
6OQ(d)
Question: Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average 10 minutes to be processed. The service counter is staffed by only one clerk, Judy Gumshoes, who works eight hours per day. Assume Poisson arrivals and exponential service times.
d. What are the probability that an arriving student (just before entering the Administrative Services Office) will me and at least one other student waiting in line?
Q10PE.
A production control system that uses a signaling device to regulate the flow of material.
Q12OQ
Question: Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,000 each. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data have been collected:
Requirements (annual forecast) | 12,000 units |
Weigh per engine | 22 pounds |
Order processing cost | \(125 per order |
Inventory carry cost | 20 percent of the average value of inventory per year |
Order quantity | Supplier 1 Unit Price | Supplier 2 Unit Price |
1 to 1499 units/ order | \)510.00 | \(505.00 |
1500 to 2999 units/order | 500.00 | \)505.00 |
3000 + units/order | 490.00 | 488.00 |
Tooling costs | \(22.000 | \)20.000 |
Distances | 125 miles | 100 miles |
Note: Assume that half of the lot size is in inventory on average (1,000/2 =500 units).
Two qualified suppliers have submitted the following quotations:
Order quantity | Supplier 1 Unit Price | Supplier 2 Unit Price |
1 to 1499 units/ order | \(510.00 | \)505.00 |
1500 to 2999 units/order | 500.00 | \(505.00 |
3000 + units/order | 490.00 | 488.00 |
Tooling costs | \)22.000 | \(20.000 |
Distances | 125 miles | 100 miles |
Your assistant has obtained the following freight rates from your carrier:
Truckload (40,00 lbs. Each load): | \)0.80 per ton-mile |
Less-than-truckload | $1.20 per ton-mile |
Note: Per ton-mile 5 2,000 lbs. per mile.
a. Perform a total cost of ownership analysis and select a supplier.
b. Would it make economic sense to order in truckload quantities? Would your supplier selection change if you ordered truckload quantities?
Q. 14-14OQ
Meritor is so pleased with the outcome from previous suggestions that the consultants are invited back for more work. The consultants now suggest a more complete robotic automation of the making of muffler assemblies and also a reduction in container size to eight per container. Meritor implements these suggestions and the result is that the muffler assembly fabrication cell now averages approximately 32 assemblies per hour, and the catalytic converter assembly cell can now respond to an order for a batch of catalytic converters in one hour. The safety stock remains at 12.5 percent. How many kanban cards are needed?