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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.

    $2.19

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