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Unformatted text preview: ANALYSIS FOR PRODUCTION MANAGEMENT
Homework 4 , due Tuesday., June 3‘“, in class 1. (22) Kindercare, a toy manufacturer, produces an “Old McDonald’s Farm” toy farm set. The product
structure tree for this toy is shown below: Level 0 0001 Old McDonald’s Farm
I 1 wk. "
Level 1 ‘
| . I | | l l
1001 Carton 1002 Barn 1003 Tractor 1004 Chicken (5) 1005 Cow (3) 1006 Horse (2)
2 wks Assembly Assembly 3 wks , 3 wks 3 wks
| 2 wks. l 2 wks.
- | . 1
Level 2 __ _________________
| l | l |
2001Plywood(8) 2002 Glue 2003 Tractor 2004 Paint 2005 Wheel Assembly (2)
1 wk. 1 wk. Body 1 wk. | 1 wk.
2 wks. 1
Level 3 ' 3001 Axle 3002 Wheel (2)
1 wk. 1 wk The firm also makes a “Deluxe Farm Set” (item 0002). Its product structure tree is identical to product 0001,
except that it includes 3 additional chickens and 2 additional cows. A third product is the “Amish Farm Set”
(item 0003) which is identical to product 0001, except it includes a horse-drawn plow instead of a tractor. The master production schedule for the three toy models is shown below: 1. cont’d a. (2) If the ﬁrm was a new start-up (thus had no inventories of any input on hand, and no Scheduled receipts) what is the shortest time required to produce any units of item 0001?
b. (10) Develop an inventory status ﬁle for wheels (3002). Assume there are 300 wheels on hand at time 0, and an order of 100 is scheduled to be received in week 1. Assume wheels are sold in boxes of 100 units.
c. (10) Develop an inventory status ﬁle for chickens (1004) Assume there are 600 on hand at time 0, and that an order of 1000 is scheduled to be received in week 5. Assume chickens are sold in bags of 1000 units.. 2. (11) At Atlas Products. a particular work center has 4 tasks waiting to be performed as of shop day 140: Task Due date ( in shop days) Processing time for Number of remaining
all remaining operations operations A 155 7 2 B 149 3 4 C 168 24 10 D 170 13 _ 5 a. (1) Prioritize the tasks by due date. b. (5) Calculate the slack time per operation, and prioritize the tasks by this criterion.
c. (5) Calculate the critical ratio for each task, and prioritize the tasks by this criterion. 3. (9) The US Census Bureau publishes monthly inventory/sales ratio data by industry. See their recently
released update at: http://wwwcensus.gov/mtis/www/mtis currenthtml a. (4) Look at the graph titled “Total Business Inventories/Sales Ratios 1999-2008.” Explain brieﬂy why this
data series is considered useful as an indicator of the economic health of the economy. Also, based on the
pattern you see, name two years that show evidence of a buildup of unanticipated inventories (that is, an
increase in the ratio), as described by the “bullwhip effect” we studied in class. You may wish'to refer to http://blogdg.ctl.ca/2008/01/tracking_the_end_of_the_freight_recession.html to help
you interpret this data. The site also lists many other useful data sources for tracking business activity. b. (2) Why do you think the Census Bureau chose to seasonally adjust the data used in the graph above?
(Hint...what would the data probably look like, if it wasn’t adjusted?) c. (3) New page down to table 3 of the census report. There are 7 NAICS categories of retailers shown.
Using the seasonally adjusted data for March 08, which industry had the highest inventory/sales ratio, and
which had the lowest? Brieﬂy explain why these 2 indusny groups would be likely to differ in their typical
level of inventory to sales. 4. (8) Visit two retail stores of the same type (fast-food restaurants, grocery stores; coffee shops; etc.). Sketch a simple diagram of the waiting area and register(s) in each. How many registers were operating in the
checkout area? How many customers were in the queue (the waiting line) when you arrived? About how long
did you (or another customer, if you aren’t buying anything) have to wait in line?...
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- Spring '08