ISE 312
Material Handling & Facility Design
Spring_2007
Homework #1
Due:
Monday 3/02/04
1
.
Economic analysis is needed in evaluating materialhandling equipment requirements. One
piece of equipment under consideration is a forklift truck that has a purchase price of
$70,000
& a
7
yr. life expectancy. The fuel cost has been calculated at
$64
per
8
hours of operation. A
cost review indicates maintenance cost is $
3.37
per hour. If the truck has to travel an average
of
25,600
feet per day, what is the cost per foot for operating this forklift? (Assume that the
truck operates
270
days per year & that the operator is paid $
16
per hour including fringe
benefits).
(10)
Depreciation = 70,000 / 7 $/yrs x 1/270 yr./days x (1/ 8) day/hr. = $4.63 /hour
Distance / hr = 25,600 ft/day x (1/8) day/hrs = 3,200 feet/hour
Total cost/hr = maintenance + fuel + depreciation + operator costs
Total cost/hour =
3.37 + 64/8 +
4.63
+
16.00 = $32.00 /hour
Operating Costs/foot = $32.00 / 3,200 = $0.010
2.
A company delivers finished products in batches to its warehouse daily. The demand
between manufacturing and the warehouse changes on the product mix of four items A, B, C,
and D. The company has found that trucks respond to the capacity change much more readily
than conveyor systems; so, the company is considering purchasing two different types of
forklift trucks (
#1
or
#2
) for transporting packaged products to its warehouse and loading
tractortrailers for shipping. Equipment specifications for each type of truck are listed below.
Pertinent sizes and costs for items
A
through
D
are listed below in material characteristics.
The loading and unloading cost includes not only cost for loading and unloading for one trip,
but also the cost for making the return trip to pick up another load. Determine the least
expensive type of forklift truck for transporting the products. Make sure to compare Total
Costs for each option. Shipments from the warehouse are made once per week. (Assume 5
day work week).
(10)
Equipment Specifications:
Maximum
Loading & Unloading
Cost per
Equipment
Volume (L x W x H) (in)
Cost ($)
Foot ($)
Type #1
48 x 48 x 48
1.30 / trip
0.010
Type #2
60 x 36 x 42
1.12 / trip
0.011
Material Characteristics:
Volume
Distance from
Distance to
Units
Units Shipped
Items
(L x W x H) (in)
Mfg. (ft.)
Shipping (ft.)
Received /Day
per Week
A
12 x 8 x 6
530
130
112
550
B
36 x 36 x 18
215
325
60
296
C
24 x 18 x 12
350
250
90
450
D
18 x 12 x 12
480
175
75
370
ISE 312
Material Handling & Facility Design
Spring_2007
 1 
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
The number of units that can be moved per trip is given by the capacity of the piece of
equipment divided by the volume of the unit to be unit.
Capacity for Item A with #1 =
48/12 x 48/8 x 48/ 6 = 4x6x8 = 192 units/truck
Each day 112 units so 1 trip per day
At shipping 550 units so 3 trips per week
Capacity for Item B with #1 =
48/36 x 48/36 x 48/18 = 1x1x2 = 2 units/truck
Each day 60 units so 30 trips per day
At shipping 296 units so 148 trips per week
Capacity for Item C with #1 =
48/24 x 48/18 x 48/12 = 2x2x4 = 16 units/truck
Each day 90 units so 6 trips per day
At shipping 450 units so 29 trips per week
Capacity for Item D with #1 =
48/18 x 48/12 x 48/12 = 2x4x4 = 32 units/truck
Each day 75 units so 3 trips per day
At shipping 370 units so 12 trips per week
Capacity for Item A with #2 =
This is the end of the preview.
Sign up
to
access the rest of the document.
 Spring '08
 Koon
 Cycle Time, raw material, facility design, RC Item, SC Item

Click to edit the document details