MBPF Inc. manufactures prefabricated garages. The manufacturing facility purchases sheet metal that is formed and assembled into finished products—garages. Each garage needs a roof and a base, and both components are punched out of separate metal sheets prior to assembly. Production and demand data for the past eight weeks are shown in Table below. Observe that both production and demand vary from week to week. Now, track the inventory at the end of each week, measured in number of finished garages. Also, construct the inventory build-up diagram. MBPF Inc. manufactures prefabricated garages. The manufacturing facility purchases sheet metal that is formed and assembled into finished products—garages. Each garage needs a roof and a base, and both components are punched out of separate metal sheets prior to assembly. Production and demand data for the past eight weeks are shown in Table below. Observe that both production and demand vary from week to week. Now, track the inventory at the end of each week, measured in number of finished garages     In the above problem, suppose that in terms of material and labor, each garage costs $3,300 to produce. Calculate the following: Calculate throughput, by considering garage as the flow unit   Calculate throughput, by considering each dollar spent as the flow   Calculate average inventory, by considering garage as the flow   Calculate average inventory, by considering each dollar spent as the flow   Calculate the average flow time of a garage, or of a dollar tied up in each

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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. MBPF Inc. manufactures prefabricated garages. The manufacturing facility purchases sheet metal that is formed and assembled into finished products—garages. Each garage needs a roof and a base, and both components are punched out of separate metal sheets prior to assembly. Production and demand data for the past eight weeks are shown in Table below. Observe that both production and demand vary from week to week. Now, track the inventory at the end of each week, measured in number of finished garages. Also, construct the inventory build-up diagram. MBPF Inc. manufactures prefabricated garages. The manufacturing facility purchases sheet metal that is formed and assembled into finished products—garages. Each garage needs a roof and a base, and both components are punched out of separate metal sheets prior to assembly. Production and demand data for the past eight weeks are shown in Table



below. Observe that both production and demand vary from week to week. Now, track the inventory at the end of each week, measured in number of finished garages

 

 

In the above problem, suppose that in terms of material and labor, each garage costs $3,300 to produce. Calculate the following:

  1. Calculate throughput, by considering garage as the flow unit

 

  1. Calculate throughput, by considering each dollar spent as the flow

 

  1. Calculate average inventory, by considering garage as the flow

 

  1. Calculate average inventory, by considering each dollar spent as the flow

 

  1. Calculate the average flow time of a garage, or of a dollar tied up in each
Week
1 2
4 5 6
3
8
Average
Production
800
1,100
1,000
900
1,200 1,100
950
950
1,000
Demand
1,200
800
900 1,100
1,300
1,300
550
850
1,000
Buildup rate AR
-400
300
100
-200
-100
-200
400
100
Ending inventory 2,200 1,800 2,100 2,200 2,000 1,900 1,700 2,100 2,200
2,000
Transcribed Image Text:Week 1 2 4 5 6 3 8 Average Production 800 1,100 1,000 900 1,200 1,100 950 950 1,000 Demand 1,200 800 900 1,100 1,300 1,300 550 850 1,000 Buildup rate AR -400 300 100 -200 -100 -200 400 100 Ending inventory 2,200 1,800 2,100 2,200 2,000 1,900 1,700 2,100 2,200 2,000
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