Potential advantages, Operation Management

Assignment Help:

Book Edition Company

Book Edition Company produces very rare cover pages for history books. Reader habits change a lot and they change their mind a lot. The cover pages are sold mainly in Germany although there is some trade with foreign countries. After a thorough survey, Book Edition Company expects that foreign demand will enjoy a dramatic increase, while US demand growth will be slight. Presently, cover pages sales are about 150,000 per year, with anticipated sales growth of 12 percent next year and the year after. For the three years following, estimations are for 8 percent growth each year.

Demand is highly seasonal in Germany for this cover pages market, and 60 percent of the annual demand is planned to be sold in October, November, and December. Cover pages are quite easy to store. Consequently, chief staff in charge has come to a decision to smooth production somewhat. Production in August, September, October, and November is set at 12 percent of projected demand. Production for January, February, and March is set at 4 percent and for the other months at 8 percent.

Book Edition Company has asked you to balance the cover pages assembly line to satisfy next year's production. For planning purposes, assume that each month has twenty-one working days. Assume that a shift has 7.5 hours of actual production time. As the assembly-line balancer, you may choose the number of assembly lines, the number of shifts, and the cycle time. Set the production rate so that demand for the peak months can be met. This will mean that extra capacity is available during the non peak months. The precedence list and estimated task rimes are as follows:

Task

Estimated time (seconds)

Immediate predecessor

A

43

 

B

32

 

C

45

A

D

26

A

E

54

A, B

F

8

C

G

44

D, E

H

12

 

I

30

F, H

J

13

G

K

28

I

1.  Balance the assembly line to satisfy the production plan for next year (with a percentage of demand produced each month) as described in me case.

2. Prepare a plan for meeting the projected demand increases for each of the next five years. Assume the production plan does not change.

3. Describe the impact on the present solution if Book Edition Company decided to produce the same amount each month-that is, to level the production. What extra costs would be incurred? What would the risks be? What are the potential advantages?


Related Discussions:- Potential advantages

Explain how od interventions need to be adapted, Describe how OD interventi...

Describe how OD interventions need to be adapted to fit different cultural contexts.

List the interesting gap between consumer & service provider, 1. Look at th...

1. Look at the above table and list the interesting gaps which you observe in the 'scripts' between consumer and service provider. Answer: 1. The starting point of the servic

Explain vmi agreement, Why is information technology such an important elem...

Why is information technology such an important element when entering into a VMI agreement? Explain using examples from Eka Chemicals and Interfast.

Describe what order quantity is optimal, The manager of a car wash received...

The manager of a car wash received a revised price list from the vendor who supplies soap, and a promise of a shorter lead time for deliveries. Formerly the lead time was four days

Explain risks associated with relying on imperfect, No one (or no organizat...

No one (or no organization) would make a decision based off of imperfect information. However, for a variety of reasons, many times organizations have had to function and make deci

Flow process chart, Flow Process Chart Flow process chart is defined ...

Flow Process Chart Flow process chart is defined as a graphic representation of all operations inspections transportations delays and storages occurring during a process or p

Product layout, how to identify layout ex holidays resort

how to identify layout ex holidays resort

Explain every business must be prepared to deal, Every business must be pre...

Every business must be prepared to deal with the global economy. True False

What are major and minor decisions, What are major and minor decisions? ...

What are major and minor decisions? Decision with regard to financial outlay can be minor or major. A decision concerned to the purchase of a CNC machine costing several lakhs

Primary elements of each of the three kinds of risk control, What are the p...

What are the primary elements of each of the three types of risk control? Assume you are in a hazard hunt; list a few factors in your job that may contribute to a hazard and how li

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd