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Planning Manufacturing Facilities
Quantitative Tools in Production Planning
Production Planning and Control
Flexible Manufacturing Systems
Assoc.Prof.Dr.B.G.etiner
Assoc.Prof.Dr.B.G.etiner
Assoc.Prof.Dr.B.G.etiner
Assoc.Prof.Dr.B.G.etiner
Assoc.Prof.Dr.B.G.etiner
Assoc.Prof.Dr.B.G.etiner
Assoc.Prof.Dr.B.G.etiner
Drill Inspection
Press
Product B
I
II
Drill
Press
Turning
III
IV
Shipping
Receiving
Assoc.Prof.Dr.B.G.etiner
Plant Layout
Planning
Grinding
Receiving
Shipping
Turning
II
Painting
IV
III
Milling
4
I
Drill
Press
Inspection
Assoc.Prof.Dr.B.G.etiner
Assoc.Prof.Dr.B.G.etiner
Production
Production Problem
Assoc.Prof.Dr.B.G.etiner
EOQ=
2 RS
I
Assoc.Prof.Dr.B.G.etiner
a)
2 RS
EOQ=
I
b)
2 RS
EOQ=
I
2.1000.40
200 1000 / 200 5 lots
2
2.1000.10
EOQ is decreased
100
(more flexible)
2
Assoc.Prof.Dr.B.G.etiner
Cost (Dollars)
R
Q
CT I
S( )
Q
2
Q is batch quantity
y
r
o
nt t
e
v os
n
I
l
C
a
u
g
n ldin
n
A
Ho
Annual Ordering Cost
Assoc.Prof.Dr.B.G.etiner
Assoc.Prof.Dr.B.G.etiner
BE1=U=
F1
S-V1
$100,000
$250-$150
=1000 units
Assoc.Prof.Dr.B.G.etiner
S-V1
$250-$150
=1000 units
ue
n
ve
it
f
e
o
r
R
l
P
a
t
To
st
o
C
l
Tota 1
TC
BE Point
400
300
200
100
BE1=U=
$100,000
ss
o
L
400
800
1200
Units Sold (U)
1600
2000
Production Capacity
Thousands of dollars
R=UxS=TC1=F1+UxV1
F1
ue
n
ve
it
f
e
o
r
R
l
P
a
t
To
st
o
C
l
Tota 1
TC
BE Point
400
300
200
100
400
800
1200
Units Sold (U)
1600
Production Capacity
Thousands of dollars
2000
BE After Automation
$100,000
$120,000
In case of using maximum capacity,
it is better to automate in this example
Assoc.Prof.Dr.B.G.etiner
1000
500
300
100
1
10
100
1000