Table of Contents
Quantitative models used in the strategy2
Strategies at Various Stations2
Strategies for the last 50 days2
Aparajita: total processing time and the graph
Assuming that there is steady flow, I=RT
Chart from excel
Step 1 is the bottleneck and there was always a queue build up and the machines were mostly in 100% utilization Decision on chase strategy
The minimum time for processing of a single lot of 60 kits, or 1 lot per job is 9.77 hrs. with Inventory Management strategy:
Calculating ROP and EOQ depending on the changing demand.
Whenever the demand was increasing or decreasing, incoming demand to recalculate annual demand. Annual demand was plugged into the EOQ formula as R and EOQ was recalculated. For ROP: ROP formula...
Normal distribution of incoming demand. Z: 95% service level (1.645)
The strat of purchasing mc was mainly on % utilization of mc and queue build up. Waited to see if the demand comes down and stabilize by itself. Only when the demand didn’t come down is when we bought mc.
Other changes made:
1) Priority change at station 2
2) Lot changes
3) Contract changes
Strategies for the last 50 days
217th day moving average...reduce the demand linearly for next 50 days. Total number of jobs x 60 inventory ordered. Also, set the ROP and EOQ as 600 (for any fluctuations)