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Supply chain mgt lectures

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Supply chain mgt lectures

  1. 1. (Problem after bottleneck)P. 276 in the bookProblem:D= OT / CTCT opt = 1.6CTmin= 1.2CTmax= t = 4.43. Number of stations:Nmax= t / CTmin = 4.2 / 1.2 = 3.5 = 4Nmin= 4.2 / 4.2 = 1Nopt = 4.2 / 1.6 = 2.62 = 31.6 1.6 1.6A 0.3 d. 1.2 F 0.6C 0.4 H 0.5e. 0.2g 0.1b 0.6Idle = 0 idle = 0.4 idle = 0.2Efficiency = Available time / Actual time = t / N.CT = 4.2 / 4.8 = 87.5%If N= 1 Efficiency = 100%If 4 Stations:1.2 1.2 1.2 1.2A 0.3 D 1.2 C 0.4 G 0.1B 0.6 E 0.2 H 0.5 F 0.6 I 0.3Idle = 0.3 Idle = 0 Idle = 0 Idle = 0.3Efficiency: t / N.CT = 4.2 / 4x1.2 = 4.2 / 4.8 = 87.5%6. Comment:Compare the three solutions and choose the best number of stations.D = OT / CT = 440 / 1.2 = 307 unitsTherefore, the 3 stations is better because it produces enough units for the demanded quantity, the4 stations will produce more (307) but we don’t need them+++++++++++++++++++++++++++++++++++++Assignment:Hazel Case P. 36Highline Fin Services P. 126P. 2 & P.8 P. 118 & 119P. 1, 11, 19 P. 229, 232, 233P. 6 & 10 P. 314Son Ltd p. 36Prob. 2 & 3 P. 401
  2. 2. CHAPTER 6: Inventory ManagementManagement = POLCP= Plan = 5Ws: Why keep inventory?, what, where, when,O= Organise = handling, logistics, shelving, shelf life,Leading / directing of staff, suppliers,C= Control inventory: this classInventory: A stock of goodsIndependent demand: demand on my final products (from customers)Dependent demand: demand on parts of products (from production department)Types of inventory:- Raw Materials and Purchased parts- Work in progress- Replacement parts, tools & supplies- Good in transit- Finished goods inventoriesFunction of Inventory:Main purpose of inventory is to keep the production running  ContinuityInventory Counting System:Periodic System: Physical count each fiscal yearPerpetual System:Universal bar code:Lead time= time from order till receiving the orderHolding cost: cost u pay per unit annually to keep the product in houseOrdering / set up cost: cost of the purchasing process (from decision to buy till goods are received)Shortage costABC Classification System:EOQ Model: Economic Optimal QuantityAdvised to manage critical inventory only.Only 1 product, annual demand known, demand even each year, ……Fig 11.2:Reorder point depends on the lead time, the shorter the lead time the less the reorder point.Total cost: Annual carrying cost + Annual ordering cost
  3. 3. TC = Q/2 H + D/Q SS= set up cost (per cycle)D= annual demandH: avg annual total cost per unitQ: Quantity produced each cycleD/Q= number of cyclesD: from productionH: from inventory mgr (last year, total spending on inventory / Avg quantity of inventory available)S: from purchasingQ: we calculate itMin TC: Q/2H = D/Q SQH.Q = 2DSQ2= 2DS/HQ= sqrt 2DS/HLet D= 1000unitsS= LE40 / orderH= LE 2/unitQ= sqrt 2x1000x40/2 = 200 unitsMin TC: Q/2H = D/Q S200/2(2) = 1000/200x40200 = 200TC= LE400 / yearROP= 10 days = 40 unitsOR accountants can simply calculate it as: H= 5%-10%Economic Production Quantity (EPQ):This model assumes we r producing what we consume! (Eg. Mardini (curtains) and its textilefactory).Problem: P. 588OT = 220 days / yearUsage = 50 couplings / dayProduction = 200 couplings / dayHolding cost = $2 / couplingSetup cost = $70 / orderQo = sqrt 2DS/H x sqrt P/P-UD = usage x operating time= 50 x 220 = 11000.Qo = sqrt 2DS/H x sqrt P/P-U = sqrt 2x11000x20 / 2 x sqrt 200/150 = 1013
  4. 4. Number of runs per year: 11000/1013 = 10.858 = 11 runsQo / u = 1013/50 = 20 USEQo / p = 1013/200 = 5 PRODUCE OnlyQo = 20-5 = 15 days Use(?)Imax = Qo (P-U/P) or 1-U/P

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