Question: 2 . ( 4 0 points ) A semiconductor chip manufacturer produces three different types of processors: dual - core, quad - core, and hexa
points A semiconductor chip manufacturer produces three different types of processors: dualcore, quadcore, and hexacore. The production rate is units per day for each processor type. Each time the manufacturing facility switches from producing one processor type to another, the production should be stopped for two days for configuration of the machinery. Demands for processors, unit production costs, and fixed configuration costs are as follows:
The inventory holding cost per unit per year is of the unit production cost for each processor type. Assume days in a year. The firm implements a rotation cycle policy: the manufacturing facility is set up exactly once for each processor type in each cycle.
a points How many units of each processor type should the firm produce each time? How many times should the firm produce a batch of dualcore processors each year?
b points What is the optimal total annual cost inventory holding costs plus production costs plus configuration costs for these three processor types?
c points What is the maximum inventory level for each processor type?
d points What percentage of the time is the manufacturing facility busy with producing each processor type? What percentage of the time is the facility being setup? What percentage of the time is the facility idle?
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