**The Quality Management Department is asked to balance**

1. The Quality Management Department is asked to balance a revised assembly line that will turn out 400 videotapes per day. There will be eight working hours in each day. The detailed information is given in the table below:

Task

Time (minutes)

a

0.8

b

0.4

c

0.4

d

0.6

e

1.0

f

0.6

g

0.4

h

0.1

Total

4.3

The diagram is as follows

a

e

cb

h

b

d

ge

f

(a) Determine the calculated cycle time.

(b) What is the minimum number of stations needed?

(c) Compute the efficiency of the system.

2. A service garage uses 1600 boxes of cleaning cloths a year. Ordering cost is $30 and holding cost is $0.6 on an annual basis. Please compute the following tasks using EOQ model.

(a) The economic order quantity based on EOQ model?

(b) The total cost of ordering and carrying

(c) Suppose the current order size is 200. What additional annual cost is the company incurring by staying with the order size 200?

3. Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 21 gallons per week and a standard deviation of 3.5 gallons per week. The new manager desires a service level of 90 percent. Lead time is two days, and the dairy is open seven days a week. (Hint: Work in terms of weeks.)

(a) If a fixed-interval model is used, what order size would be needed for the 90 percent service level with an order interval of 10 days and a supply of 8 gallons on hand at the order time?

Extra Credit

A grocery shop that makes candles offers a scented candle, which can be produced at a rate of 36 boxes per day and used 12 boxes per day. Assume that demand is uniform throughout the year and the shop opens for 360 days. Setup cost is $80 for a run, and holding cost is $2 per box on a yearly basis. Please compute the following tasks using EPQ model:

(a) The economic run size

(b) The maximum inventory

(c) The total cost

Please type your answer and the steps of computation in a Word file. (Please DO NOT just write the answer. Show the steps that you solve the problems. Partial credit will be given based on your computation steps.) Please save the file as “MGMT 335Final_Your

**Category:**Business, General Business

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