MGT613 Assignmnet 1 Solution and Discussion


  • Cyberian's Gold

    PRODUCTION/OPERATIONS MANAGEMENT (MGT613) FALL 2019
    Assignment No: 1
    DUE DATE: 28th January, 2020 Learning Outcome:
    Marks: 10
    After attempting this activity student will be able to have an understanding of various types of numerical problems related to inventory management.
    Assignment:
    Javed manufacturers limited is a manufacturing firm that deals in the production of different sorts of toys in Sialkot city. The firm requires 24,000 wheels per year for the manufacturing of its newly launched Caravan truck series toys. The firm makes its own wheels for the manufacturing of the newly launched toy series at a rate of 600 per day. There is a uniform production of toy trucks over the entire year. The company is incurring a carrying cost of Rs. 3 per wheel a year. The setup cost for the production run of wheels is Rs. 2400. It is believed that the firm operates for 240 days per year.
    Questions:
    Considering the above information, you are required to compute the following for Javed Manufacturing Ltd.

    1. What is Optimal Run Size? (Marks 3)
    2. Compute the minimum total annual cost for carrying and setup (Marks 3)
    3. What is cycle time for the optimal run size? (Marks 2)
    4. Compute the Run Time? (Marks 2)

    Important Note:
    Provide proper FORMULAS and CALCULATIONS. Failure to this, will lead to deduction of Marks.
    SOLUTION GUIDELINES AND INSTRUCTIONS:

    1. Your answer must be according to given instructions and format.
    2. Irrelevant information should not be provided.
    3. Statistical information, graphs and figure are not required.
    4. Solution copied from any source will be treated as “Zero”.
      IMPORTANT:
      24 hours extra / grace period after the due date is usually available to overcome Uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.
      OTHER IMPORTANT INSTRUCTIONS: DEADLINE:
       Make sure to upload the solution file before the due date on VULMS.
       Any submission made via email after the due date will not be accepted. FORMATTING GUIDELINES:
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     You may also compose your assignment in Open Office format.
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    REFERENCING GUIDELINES:
     Use APA style for referencing and citation. For guidance search “APA reference style” in Google and read various websites containing information for better understanding or visit the following link:
    http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html
    RULES FOR MARKING
    Please note that your assignment will not be graded or graded as Zero (0), if:
     It is submitted after the due date.
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     It is cheated or copied from other students, internet, books, journals etc.
    GOOD LUCK!


  • Cyberian's Gold

    Solution idea
    D=Demand= 24000
    S=Ordering/Setup cost= 2400
    H=Holding/Carrying Cost= 3
    U= Usage rate=24000/240= 100
    P= Production rate= 600

    1. Optimal Run Size:
      Q0= √2DS/H√p/(p-u)
      Q0= √(2240002400)/3√600/(600-100)
      Q0= √115200000/3√600/500
      Q0= √38400000* √1.20
      Q0= 6196.77*1.0954
      Q0= 6787.94 ≅6788

    2. Minimum total annual cost for carrying and setup cost.
      = Carrying Cost + Set up Cost
      =( I max/2)H+ ( D/Q0)S
      Where,
      I max= Q0/p ((p-u))
      I max= 6788/600 (600-100)
      I max= 11.31 (500)
      I max= 5655
      TC min= Carrying Cost+ Setup Cost
      TC min= (I max/2) H+ (D/Q0) S
      TC min= (5655/2) 3 + (24000/6788) 2400
      TC min= (2827.5) (3) + (3.53) (2400)
      TC min= 8482.5 + 8472
      TC min= 16954.5

    3. Cycle time for the Optimal Run Size.
      Q0/U=6788/100
      = 67.88 ≅ 68 days

    4. Run time
      Q0/p=6788/600
      = 11.31 days



  • MGT613 assignment solution required


  • Cyberian's Gold

    please share solution idea



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