Problem 1:

Management wants to design an assembly line that will turn out 360 units per day. There will be eight working hours in each day. The industrial engineering staff has assembled the information below:

Task

a. Determine the minimum, maximum, and calculated cycle time.

b. What is the minimum number of stations needed? 

c. Draw the precedence diagram. 

d.  Assign tasks to stations using this rule: assign tasks according to greatest number of following tasks. In case of a tie, use the tiebreaker of assigning task with the longest processing time first.

e. Calculate the efficiency of the system.

Problem 2:

Following data is given:

weekly demand (d) = 140 units/week

Ordering costs (S) = $20/order

Holding costs (H) = $1/unit/year 

Lead time = 6 weeks

Number of weeks per year = 52 weeks

Suppose the firm uses the EOQ to control the inventory, answer following questions:

a. Determine EOQ?

b. Find the length of an order cycle (in weeks)?

c. If you use EOQ as order quantity, what would be the total costs? 

d. Find the reorder point (ROP)