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Accounting

MULTIPLE PRODUCTIONS
Your plant is producing three diferent products on the same production line
Processing t Lot size
Annual demand for A 2,000,000 45 seconds 2000
Annual demand for B 400,000 55 seconds 400
Annual demand for C 800,000 70 seconds 800
Change over times
From A to B 90 minutes
From A to C 40 minutes
From B to C 80 minutes
From B to A 90 minutes
From C to A 60 minutes
from C to B 50 minutes
Because of shipping requirement you ned to rotate the three productions
You are running 365 three shifts of 8 hours
You estimate that your capacity utilization will be 85%
A. what is the best rotation sequence there are only two possible sequences
B. how many machines do you need
TO CALCULATE THE NUMBER OF MACHINES, YOU ADD THE TOTAL TIME TO PRODUCE A, B AND C PLUS THE TOTAL TIME TO CHANGE OVER FROM ONE PRODUCTION TO THE NEXT
AND YOU DIVIDE BY THE TOTAL TIME AVAILABLE * (1-C)
NUMERATOR production time changover time subtotal
product A
product B
product C
Total
DENOMINATOR 365 days
ONE SHIFT 8 HOURS
3600 seconds per hour
capacity buffer 10%
C. how many machines would you need if you chose the OTHER sequence
NUMERATOR production time changover time subtotal
product A
product B
product C
Total

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