Quality Parts Company supplies gizmos for a computer manufacturer located a few miles away.
The company produces two different models of gizmos in production runs ranging from 100 to
300 units. The production flow of models X and Y is shown in Exhibit 14.14. Model Z requires
milling as its first step, but otherwise follows the same flow pattern as X and Y. Skids can hold
up to 20 gizmos at a t
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Quality Parts Company supplies gizmos for a computer manufacturer located a few miles away.
The company produces two different models of gizmos in production runs ranging from 100 to
300 units. The production flow of models X and Y is shown in Exhibit 14.14. Model Z requires
milling as its first step, but otherwise follows the same flow pattern as X and Y. Skids can hold
up to 20 gizmos at a time. Approximate times per unit by operation number and equipment setup
times are shown in Exhibit 14.15. Demand for gizmos from the computer company ranges
between 125 and 175 per month, equally divided among X, Y, and Z. Subassembly builds up
inventory early in the month to make certain that a buffer stock is always available.
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