Asked by Nichole Stone on Jun 20, 2024
Verified
You have read that in JIT and lean production the optimum lot size is one, with some exceptions for packaging and physical limitations. If a product currently has a lot size of 25, what must happen to setup time for the lot size to truly fall to one? Data for this problem are D= 100 units, S = $75 based on setup time of 50 minutes at $1.50 per minute, and H = $40 per unit per year.
Setup Time
The duration required to prepare equipment or a process for production, affecting the efficiency of manufacturing operations and job scheduling.
Lot Size
The number of units of a product bought or sold in a single transaction.
Setup Cost
The expenses incurred when preparing equipment, machinery, or systems for a new production run or switching from producing one item to another.
- Comprehend the consequences of minimizing lot size to one in the context of JIT and lean production methodologies.
Verified Answer
HM
Hailey MagalhaesJun 25, 2024
Final Answer :
Students may try ever smaller values for S, and find S = $0.12 by trial and error. Or they may solve the economic production quantity model for S, which also yields $0.12. Or they may recognize that the reduction in Q by a factor of 25 requires a reduction in S by that factor squared; in this case $75 / (25x25) = 0.12.
Learning Objectives
- Comprehend the consequences of minimizing lot size to one in the context of JIT and lean production methodologies.