LS2644: (a) Overland Motors uses 25,000 gear assemblers each year and purchases them at Rs. 340 each. It costs Rs.5,000 to process and receive an order, and inventory can be carried at a cost of Rs. 78 per unit-year.

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Question: (a) Overland Motors uses 25,000 gear assemblers each year and purchases them at Rs. 340 each. It costs Rs.5,000 to process and receive an order, and inventory can be carried at a cost of Rs. 78 per unit-year.

(i)How many assemblies should ordered at a time?

(ii)How many orders per year should be placed?

(b) Shiv Bakery has orders for five specialty jobs (A,B,C,D and E) that must be processed sequentially through two work centres (baking and decoration). The amount of time (in hours) required for the jobs is shown below.

Determine the schedule sequence that minimizes the total elapsed time for the five jobs.

 


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