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Production Planning Problem Set

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Problem 1: The Seiko Watch Company has developed its aggregate plan for quartz watches. Each employee can produce about 300 watches per month and earns an average of $1,800 per month. It costs $100 to hire a new employee and $200 to lay one off. Determine total employee related costs of the following aggregate plan if work force is varied to met production.

Jan 10,000
Feb 12,000
Mar 12,000
Apr 9,000
May 9,000
June 10,000
July 12,000
Aug 15,000

Problem 2: The assembly of aluminum storm windows requires the following tasks (see attachment). The company operates on 9-hour shift and allows one hour for coffee breaks, lunch, and cleanup of work stations. The daily demand for storm windows is 360 units.
a) Determine the cycle time.
b) Determine the minimum number of workstations.
c) Group the line for balance and determine the level of efficiency of this line.

Problem 3: Given the following (see attachment) layout of 6 different departments and the frequency of movements among them along with the distance between each department, determine if less material handling is achieved by switching departments D and F. Assume diagonal distances to be 2 units and horizontal/vertical distances between adjacent departments to be 1.

Problem 4: A detergent manufacturer uses a single facility for filling and packaging all its 4 major types of detergents. The inventory at the beginning of a particular week, the average demand, the production rate, and lot size are given below (in ounces)(see attachment). If run out time is used for scheduling this activity, how would the activity be scheduled during the first 4 weeks?

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Problem 1:
Wage Rate $1,800 per month
Productivity 300 watches per month
Hiring cost $100
Firing cost $200

Month Planned Production No of employees required Salary Cost Hiring Cost Firing cost Total Employee related cost
Jan 10000 34 $61,200 $3,400 $0 $64,600
Feb 12000 40 $72,000 $600 $0 $72,600
Mar 12000 40 $72,000 $0 $0 $72,000
Apr 9000 30 $54,000 $0 $2,000 $56,000
May 9000 30 $54,000 $0 $0 $54,000
Jun 10000 34 $61,200 $400 $0 $61,600
Jul 12000 40 $72,000 $600 $0 $72,600
Aug 15000 50 $90,000 $1,000 $0 $91,000
Total 89000 $536,400 $6,000 $2,000 $544,400

Problem 2:
Task Preceding Task Time (Sec)
A - 65
B A 80
C A 50
D A 30
E A 38
F B,C 35
G C 60
H D,E,F,G 50

a) Determine the cycle time
Cycle Time = Productive Time per day / Demand per day
Productive time 28800 seconds
Demand per day 360 units
Cycle Time 80.00 seconds

b) Determine ...

Solution Summary

The production planning problem sets are examined.

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