Question: A manufacturing system with two stations yields a production rate of 4 unit/min. with a cost of $40. The time between failures and time to

A manufacturing system with two stations yields a

A manufacturing system with two stations yields a production rate of 4 unit/min. with a cost of $40. The time between failures and time to repairs for the first station are 4800 min and 120 min., respectively. The penalty for late delivery is $3/unit-hr. Assuming an annual interest rate of 15% and a planning horizon of 2 months (150 hours/month), Requirements: a. Woul you recommend the Pull production system? Why? b. Calculate the optimum inventory level between stations. c. Calculate the number of failures during the time horizon & the operating cost of the production system. d. Assume a buffer size of 20 units, what production policy should you recommend? Why? e. If you were to operate the system as pure Push System, calculate the optimal WIP. If you were to operate the system as Pull System, calculate the optimum batch size. A manufacturing system with two stations yields a production rate of 4 unit/min. with a cost of $40. The time between failures and time to repairs for the first station are 4800 min and 120 min., respectively. The penalty for late delivery is $3/unit-hr. Assuming an annual interest rate of 15% and a planning horizon of 2 months (150 hours/month), Requirements: a. Woul you recommend the Pull production system? Why? b. Calculate the optimum inventory level between stations. c. Calculate the number of failures during the time horizon & the operating cost of the production system. d. Assume a buffer size of 20 units, what production policy should you recommend? Why? e. If you were to operate the system as pure Push System, calculate the optimal WIP. If you were to operate the system as Pull System, calculate the optimum batch size

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