Supply Homework
Problem A
| Problem A: Portland Sewing Factory | |||||
| Bag type | Demand Forecast (units/year) | Processing Time (minutes/ unit) | Lot Size (# of bags) | Setup Time (minutes/ setup) | |
| Messenger | 14,000 | 8 | 10 | 50 | |
| Grocery | 16,000 | 10 | 10 | 80 | |
| Fashion | 19,000 | 12 | 25 | 40 | |
| Total Processing Time | Total Setup Time | minutes | |||
| Total Time Required | minutes | ||||
| Shifts | 2 | Total Time Available | minutes | ||
| Yearly Hours per Shift | 2,000 | Lines | |||
Problem B
| Problem B: Camus Ketchup | |||||||
| Process | Fixed Cost | Variable Cost | Units | Cost Current | Line A | Line B | |
| Current | 240000 | 0.5 | 0 | ||||
| Line A | 320000 | 0.3 | 250000 | ||||
| Line B | 400000 | 0.25 | 500000 | ||||
| 750000 | |||||||
| Comparison | Indiff Quantity | 1000000 | |||||
| Current vs. A | 1250000 | ||||||
| Current vs. B | 1500000 | ||||||
| A vs. B | 1750000 | ||||||
| 2000000 |