2) Tomlinson Furniture has a single lathe for turning the wood for various furniture pieces, including...

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2) Tomlinson Furniture has a single lathe for turning the wood for various furniture pieces, including bedposts, rounded table legs, and other items. Four forms are turned on the lathe and produced in lots for inventory. To simplify scheduling, one lot of each type will be produced in a cycle, which may include idle time. The four products and the relevant information concerning them appears in the following table. Monthly Pieces Requirements Setup Time (in Hours) Unit Cost Production Rate (Units/day) J-55R 150 1.2 $20 140 H-223 165 0.8 $35 220 K-18R 60 2.2 $12 100 Z-344 280 3.1 $45 165 Worker time for setups is valued at $85 per hour, and holding costs are based on a 20 percent annual interest charge. Assume 20 working days per month and 12 months per year for your calculations. a) b) c) d) e) Determine the optimal length of the rotation cycle. What are the optimal lot sizes for each product? What are the percentages of uptime and downtime for the lathe, assuming that it is not used for any other purpose? Draw a graph showing the change in the inventory level over a typical cycle for each product. Discuss why the solution you obtained might not be feasible for the firm, or why it might not be desirable even when it is feasible. 2) Tomlinson Furniture has a single lathe for turning the wood for various furniture pieces, including bedposts, rounded table legs, and other items. Four forms are turned on the lathe and produced in lots for inventory. To simplify scheduling, one lot of each type will be produced in a cycle, which may include idle time. The four products and the relevant information concerning them appears in the following table. Monthly Pieces Requirements Setup Time (in Hours) Unit Cost Production Rate (Units/day) J-55R 150 1.2 $20 140 H-223 165 0.8 $35 220 K-18R 60 2.2 $12 100 Z-344 280 3.1 $45 165 Worker time for setups is valued at $85 per hour, and holding costs are based on a 20 percent annual interest charge. Assume 20 working days per month and 12 months per year for your calculations. a) b) c) d) e) Determine the optimal length of the rotation cycle. What are the optimal lot sizes for each product? What are the percentages of uptime and downtime for the lathe, assuming that it is not used for any other purpose? Draw a graph showing the change in the inventory level over a typical cycle for each product. Discuss why the solution you obtained might not be feasible for the firm, or why it might not be desirable even when it is feasible.

Answer rating: 100% (QA)

a To determine the optimal length of the rotation cycle we need to calculate the economic order quantity EOQ for each product The EOQ formula is EOQ sqrt2 Annual Demand Setup Cost Holding Cost per Uni... View the full answer