A manufacturer produces both widgets and gadgets. Widgets generate a profit of $35 each and gadgets have a profit margin of $55 each. To produce each item, a setup cost is incurred. This setup cost is $500 for widgets and $300 for gadgets. Widgets consume 2 units of raw material A and 3 units of raw material B. Gadgets consume 6 units of raw material A and 2 units of raw material B. Each day, the manufacturer has 400 units of each raw material available. Assume that it is possible to produce fractional quantities of widgets and gadgets.

Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 80 parts. A part requires 2 minutes in milling and 6 minutes in finishing. The move time between the two operations for a complete batch is 7 minutes. Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 5 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If reguired, round percentages to one decimal place. Traditional Philosophy Lean Manufacturing Philosophy Value-added time 8 V min 8 V min Non-value-added time 632 X min 48 x min Total lead time 640 x min 56 x min Value-added ratio…

The Northridge Company tends to keep the inventory low. At the same time, it is important to respond to demand quickly, since a customer who wants a product K is very likely to get one from a competitor if Northridge Company doesn’t have one available immediately. Northridge Company’s current policy to produce the product K is to produce 100 per week, which is the average demand. Even this is a problem, as the production manager has pointed out, since the equipment is also used for other products and the lot size of 300 would be much more efficient. He said he is currently set up the production for product K for the next week and states that he has capacity available to produce 300 at a time next week.   The following lists the forecasts and actual customer orders for the next 12 weeks.   Week 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 90 120 110 80 85 95 100 110 90 90 100 110 Customer Orders 105 97 93 72 98 72 53 21…

A company wants to store the following seven SKUs so there is 100% accessibility.Items are stored on pallets that are stored four high.a. How many pallet positions are needed?b. What is the cube utilization? c. If the company bought racking for storing the pallets, how many pallet positionsare needed to give 100% accessibility?