Problem:
1. The Harvey motorcycle company produces three models: the Tiger, a sure-footed dire bike; the LX2000, a nimble café racer; and the Golden, a large interstate tourer. This month's master production schedule calls for the production of 54 Goldens, 42 LX2000s, and 30 Tigers per seven-hour shift.
a. What average cycle time is required for the assembly line to achieve the production quota in seven hours?
b. If mixed-model scheduled is used, how many of each model will be produced before the production cycle is repeated?
c. Determine a satisfactory production sequence for the ultimate in small-lot production: one unit.
d. The design of a new model, the Cheetah includes features from the Tiger, LX2000, and Golden models. The resulting blended design has an indecisive character and is expected to attract some sales from the other models. Determine a mixed-model schedule resulting in 52 Goldens, 39 LX2000s, 26 Tigers, and 13 Cheetahs per seven hour shift.
2. A company using a Kanban system has an inefficient machine group. For example, the daily demand for part L105A is 3,000 units. The average waiting time for a container of parts is 0.8 day. The processing time for a container of L105A is 0.2 day, and a container holds 270 units. Currently, there are 20 containers for this item?
a. What is the value of the policy variable representing the safety stock percentage?
b. What is the total planned inventory (work in process and finished goods) for item L105A?
c. Suppose the safety stock percentage was 0 (zero). How many containers would be needed now? What is the effect of the safety stock percentage in this example?