Universal Motors installed a mixed model assembly line at its Huntsville plant last year when demand for SUV’s was still strong. With the rising gas prices, however, SUV and van sales have plummeted, and demand for smaller more fuel efficient cars has surged. The plant has the capacity to produce 200 vehicles per day. Monthly demand for cars is estimated at 2000 per month, vans at 1000 per month and SUVs at 500 per month. The plant is operating at a slowdown schedule of 20 days per month.
a. Design a production sequence that will meet demand and level production of the various models.
b. How many times will that sequence be repeated per day?
c. Explain how the sequence you propose allows quicker adjustments to demand changes. What impact does it have on component demand?