Chapters 8 & 9 (SCM 488)
1. Transportation costs alone can be ________% of selling price. Location can impact upwards of _______% operating expenses.Wage rates account for __________% of most manufactured products
2. Your company is making toys. Most of the manufacturing cost is in labor. In the US your plant has 10 workers each making $33/hr. Productivity is high - on an 8 hr shift the plant makes 6,000 units.
The decision is made to offshore production to China. The company pays $1.50/hr in China and uses 35 workers. They make 4,000 units per 8 hr. shift. What is the difference in labor content between the 2 plants?
3. As the production director, you need to make a decision where to locate the next factory. Your plant will be 8,000 square feet and produce no more than 10,000 units per year. Units will be sold for $3 apiece. The cost to build your plant in Chicago is $90/sq. foot @ a manufacturing variable cost of $.73 per piece.
In Indianapolis the cost to build is $60/sq. foot @ a manufacturing variable cost of $1.10 per piece. In Kansas City the build cost is $65/sq. foot @ a manufacturing variable cost of $0.85 per piece. At what production volume is it a better cost option to build the plant in Chicago? Does this make sense given the plant will produce no more than 10,000 units/yr?
4. You are the manager of a logistics company. You need to decide where to locate a new warehouse to most cost effectively truck shipments to customers. Most of your customers fall near 4 cities. Laying a grid on a map ("X" is east west and "Y" is north-south) you plot where these cities are relative to one another.
Monthly 1,000 truck loads are sent to Baltimore; 1500 are sent to Latrobe, 600 to Harrisburg and 1500 to Philadelphia. Based on minimizing trucking distances, at what relative point (X,Y) should the warehouse be placed?
5. 900 toys per day are needed. The factory is scheduled to be run 8 hrs. per day 3 shifts per day with 70% uptime. What is the takt time of the operation?If it takes 3 minutes for a person to assemble a toy, how many workers should be hired?
6. A plant works 8 hrs per day,1 shift per dayto make toys (assume 100% efficiency). Required output to meet customer demand is 1000 toys per day. There are 6 operations used to make a toy.
What is the takt time? What is the cycle time? How many work cells are needed? Will the cycle times meet demand?How many work cells are needed? In the flow diagram below, please circle the cells. Based on takttime and operation times in the cell, how efficient is the cell?
