Frank's machine shop operates 250 days per year. Frank sells 5,000 units per year of his most popular item, a specialty gear. The setup cost for this gear is $100 and the monthly unit cost of holding inventory is 1% of the production cost per unit, which is $50. The lead time is 10 days. When the gear is being produced, the shop can make 80 gears per day (Hint: You should use the production model for inventory management).
1) How many gears should be produced in each run at what minimum cost?
2) What is the cycle time?
3) Find the reorder point.
4) Draw a graph to depict inventory level against time and show on it the quantities found above. Also, what is the maximum inventory level.
The production model for inventory management: Frank's machine shop
Total quality management model and methodologies
Choose a TQM model or methodology. Assume that you are an expert on the selected TQ model/method. Develop a paper on the specific TQ model/method to later present to an organization for bidding to possibly get the $50m bid. The goal is to educate and sell the concept to the Board of Directors. Prepare a 1,050-1400 word paper for the organization's leadership so that they can incorporate it into the organization's strategic planning process. Possible processes include:
a. Just-in-time (JIT)
b. Lean manufacturing or service
c. Continuous quality improvement (CQI)
d. International Organization for Standards (ISO 9000 and 14,000)
e. Value chain analysis
f. Six Sigma
willing to add more credits. need references..thank you very much. It will be geatly appreciated.