Assignment 3: Power 8 Team

I.  Demand

  order !"#$%&% ' 70   $ "*+ 50 '-$ !$" %! $!"#$% Y= 0.1288X + 1.575 6 
order &% 10.59 orders (: standard error = 2.61 orders) @ ' 70, :%*+&% ' 140,
" !+$ '6@
:%&% ' 210 -%$C*D  0 @ ' 268 !  $&*%
E- "%  "  F"'%$+

Revenue in each contract by lead time

Demand (orders) 1,750

1,500
1,250 C1
1,000 C2
10.59 750 C3
500
250
Days
-
Job 0.286
0.375
0.167 0.667
0.792
0.583 1.000 1.208
70 140 210 268 Lead
time

II.  Capacity %&'())*+,-'./)%01& Station

 "*+  %  !$E (Completed job) - *'#$  $@M" '% $N#*%:$C*%'$ (Utilization of machine) @ 'F
% :" %*+@$66:C* ' 6 !  $&  :  U
Capacity *%:$C*%'$ -# Station F":$C*% Stuffer :Tester :Tuner = 3.19 :
6.00 : 8.14
 "*+@ 50 '-$ 6 
'%  ' 23 #"F  $FF"$'6$ F"  $N# C*%  Lead time  3 '
]%! 
#^   Capacity F%*  :$C*% Stuffing  Utilization 100% #'%-# ' 11 -C*% 
^#"*% $@
"$66!  $&$*%$'6 $N#F"%*'6% "   10.59 orders/ ' b @#" Contract 2 (Leadtime 0.5 ')
'%': $:$C*%'$ 6 : 3 : 3 (: 18 orders/ ') * %F$E#  
  :$C*%'$@ $]C* '-$F " 5 : 3 : 2 (: 15.96
orders/ ') $ %!*+@C* #"*%'F "!
$'6 $]C* Raw Material@:$'%#*F $   $:  U
% :" %@$66#'%-# ' 50    99 orders  $FF"$'6$ F"  $N#@M % 10-15 '-$
III. Reorder Quantity
 $:  U Optimal number of pieces per order (EOQ) @M"$ U!:" #"*% $@-# ' = 10.59 x 60 = 636 kits
DS/Q = QH/2 Q 2 = 2DS/H Q* = (2 * 636 * 1000) / (0.1 * 10/365) = 359 orders / :$'%
 $:  U
$ U $!'%]C* @
"#"^$ # !^# !+#$" %#" &+  @M"# $ U% " -%F -#* %F$E# 
^*%  #"^ $!'%]C*/:$'% $1,000 &C*  "*  (6'6% $1,500 #  Contract 2) -&" $ !'%  # :  UF"
%EF*+'6 Raw Material     '%D!  $& %' ]C*:$C*%'$ C*  '% $N#-$'6 Contract 2 F"$E 
'%'$ U $!'% ]C*
 !%
F "#   Q*   ^'@  F:  #"*%%^]C*:$C*%-"  '
IV. Reorder Point
C*%  %^F#"*% $@
" $  Raw material @ $N# %
 Stockout policy F ":*" %!+% :C* 99.95%(Z=3.28)
ROP = (Average daily demand x Lead time in days) + Zσd Lead tme = (10.59 * 4) + (3.28 * 2.61* 4 ) = 60 orders
  $
^ ROP &+:  UC*$ U orders  $-% F":  UF "
V. 7.8 Contract
^monitor % :" %@$66, Utilization, - " Order - Lead time *%$66 C*#'!@$C*% $$'6 Contract
F"  $:  U$ F" F"$'6 -# Contract #  job lead time -"
^#'C*#' 6* $ Contract
  %F"*  # -!% @$+ ]%F" 
• C* Lead time : "*  0.667 ' %F"$'6  Contract 2    Contract 1
• C* Lead time : "*  0.286 ' %F"$'6  Contract 3    Contract 2
-@M" Lead time :  UF" ! $*6@ $#'!@ Contract @ $ % 6$t'u
VI. Lot size

 %^!#v    $-6% lot size  @

"  @M"@$66"*%]%!  $& %F"#  contract 2
-#* :$C*%'$6 %#'  $ % F'6 $* lot '%'%#"*% $!*6$66 $$'6 Lot size C*+ $ % $%
-#C*% @M %-$% :" %*+@$66  Leadtime !+% 
^%*%  $ +NN$6 %#' "   @M", $$*:   $-6% Lot F"  

!  $&:$% :" %@
"**F
* b 
'% F" $*%$'6 Lot size @-#M %  6  % ** F""*% '%D
order  "  '%F capacity *%$66   station 3 : $*
" :$C*%!+%  $C*D ^% :$ 
   $ %  station
3  set up time   -!%  C*$ * Lot   E @
"  @M"@ $ % C*@
"N# !$E#* order  
 * %%$U'% capacity *% station 3 F%* !%N@
" line  $N#F!^% %!! $C*D
 @
"^ %-  % $$'6 Lot  '%F!*6 $$'6 Lot 3 - Lot 5   !  $&' $ balance $66   $$'6
Lot 2 @
"F"* ]%E   $:$C*% Tuner $*%$'6 $$'6 Lot 2 F"'


  50-70
• ' 50 ]C*:$C*%'$# -N %F ":C* 5:3:2  "*+6   WIP :" %*+@$66 99 orders C* '% $N#@
-"
 %^:   !  $&:$% :" %**F"$ U 15 '  $:  U : % :" % / ( '% $N#-expected demand)
= 99 /(15.96-9) = 14 ' '%:% Lot1@
"$66:$% :" %**@
"
*, ROQ '%:%
F "# :C* 120 batches ("* 
EOQ :  UF"$%) C*E6%F "]C*:$C*%'$#@* :# -$'6 ROP #  orders  = 60 orders @ ' 53


  70-140
• ' 73 $'6 ROP=70 ROQ = 255 batches C*%  orders "  !+%   F":  $UF " %$'6 ROP E"*
U ROQ 
F "$ U 2/3 *%:  UF"#$%F "]C*:$C*%'$
• ' 73-75 $'6 Lot 2 C*$66:$% :" %**FF"-" %  $!*6N  $$'6 Lot size @#" ' 74 :%F "$ U 3
' ^6  % ** F""*%'%D order  "  '%F capacity *%$66   station 3 : $*
" :$C*%!+%
 $C*D %:    $ %  :$C*% Tuner  set up time   -!%  C*$ * Lot  @U capacity
:$C*%'%F%*$*%$'6F"  @
"% :" %   $**+U ' 77 ^%$'6 size '6  Lot 1 - Contract 1
*C*:$% :" %
• ' 85 ]C*:$C*%  6:3:3 order  !+%*+ $ U 13.6 $*6'6^*%  %!%*@ $]C* Raw material
:$'%#*F % '% $N# $]C*:$C*% Stuffer - Tuner * % 1 :$C*%
• ' 85 $'6 Lot 2 *%   $:$C*% Tuner  3 :$C*% %*%  $$'6 Lot size  2
C*!*6 '% $N#@
 -#  $## $ U% ** :
" :$C*% $ &% $ F"F"$'6@$
 % ' 6  NF"F
 F!  $&N##  Leadtime @ Contract 2 F" ^%$'6 size '6  Lot 1 *:$'% - :$ 
F"  " $ U demand
 "  $'6 $66'%F!  $&$*%$'6% #  Contract 2 F"#* C*%#*  %'%:  : $:% Lot 1 - Contract 1
F "*
• ' 107 ]C*:$C*%  7:4:3   $!'%# $U$ F"*%*C  2 !  $& %F" 1500/order   Contract 2
- @
"$ U% generate F"@-# '!+%   *CD ^%   :$ 
! 
#^-*%   *+b @ 2 $E
:C* A. @M" Lot 1 -#$ U:$C*%'%$66   $ (station1,2)
$C*
B. @M" Lot 2 "F:$C*% Tuner     
^%C* %C*-$:C*]C*:$C*% Stuffer - Tester *  $U -"  %U'%* -
'% ' 140
E* !#"*%]C**+-" C*% $ U demand - "!+%
• ' 110 ]C*:$C*%  7:4:4
'% ^]C*:$C*%'$# -N A -" 6  '%F!  $& Leadtime@
"#   0.5
'F"%$'6-N@
 $]C*:$C*% Tunner  4 :$C*% ^  $:  U% F"#  Contract 2 :C* 1500/order
@M %$  
C**&% 150 ' -"  demand "  -66F
'% ' 140
$C*"*%E#  E'%:^" '6%]C*:$C*%
$140,000 ]%
'% F"]C*:$C*%'$-" ^!'%#
E$ F" F"#  Contract 2 F"'
$ &%'%!  $& @
"$66 $N#:  Balance F"" 


  140-210
• ' 139 ROP = 95 orders $'6 ROP  NC*$*%$'6 demand *  # 

• ' 185 ROQ = 452 batches C*% $66 $N#z^6'*+-" -F-N $! $*%%C*^$!%:*C#
^%  $!'%]C* Raw Material #  $:  U U ' 185  Avg. orders 16.83 F" Q* =452 orders

   211
• ' 214  %^ %-N@M %!^" *% $]C* Raw Material   $]C* lot @
{:$'% @
"!  $&@M"&% '!^" 
$ : '%   &" $ 
 EOQ - ROP #  $:  U@
":^": # #
 order  $- %#' F@ %!+%
*  @
"$66  $!'%]C* Raw Material @M % '" D*:$'% *@
" Sunk cost   $
C* kits FF"@M"   
• @ $
$ U $!'%]C* Raw Material :$'%!^"   :  U kits #"*%@M"'%
'6  '!'%]C* -"
'"  ROP
  $$ U $ '#"*%!'%]C**:$'% #$%'6 ' 215 : 53 '&% ' 268, $ U $U Avg. order
'% ' 215
*+  17 orders/ ' -U' ROP:C* 89 = [0.5 x 17 orders x 53 days] ~ 89 = 451 -89 = 362 orders
^:  $U  !'%]C* Raw material lot !^"  F"@ ' 215 ]% $:  $U$ F  @
"  $
 ROQ
:  UF " 362 batchesF' $ $66  $!'%]C* kit lot @
@M %" *% ' 214 " $ U $!'%]C*:C* 452 batches
 @
"^ %:  $U   Raw Material 
C**+! 
% U ' 268
• @!  $  :$C*%'$ ^  $$66%$
 % Contract 1 '6 Contract 2
6'6%F"  $ :$C*%'$C*$*%$'6 Leadtime #  Contract 'D 6   $'%:% Contract 2
!$" %$ F"F"   %F"$'6  $ :$C*% '%'%'%:%  :$C*%'$F "#  C*@
"!  $&$'6 orders F"@$U
demand - %#'

 
  !

   $ %  Simulation :$6 268 ' &C*   *@ ! 
%C*% %!*+@*''6-$ -#^b+@  
:C*  $^!  $& monitor #' line $N#-:+-%  @
"  -* !@ $ :$ 

 %-"F,  %C*
 D 
  $  $'6-N@
" Line balance @M % ' 107-110 -#* %F$E#  ^: $ monitor @
"   @ $!'%]C*
Raw material :$'%!^" F'  @
"'% Raw Material 
C**+  
% ]%Inventory  !F$ FF"&+ F@M"@ $ generate
$ F"