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Management Studies

The daily demand for parts from machining workcell JMB to an assembly workcell is 1,600 units. The average processing time is 25 seconds per unit. A container spends, on average, 6 hours waiting at JMB before it is processed. Each container holds 250 parts. Currently 10 containers are being used for the part.

a. What percent safety margin of stock is being carried?

b. If you wanted to retain this safety margin, but remove one container, to what value must the waiting time be reduced?

c. What would happen if the demand for parts increased to 1,900 with K = 10?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93130594

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