78.7k views
4 votes
Ford would like the supplier to reduce their batch size by a factor of four; that is, if the supplier currently produces q parts per batch, toyota would like them to produce q/4 parts per batch. based on what the supplier should modify in order to achieve this result, what must this correctly chosen value (c, h, r, or s) be in order to reduce the batch size by a factor of 4:

2 Answers

4 votes

Final answer:

The question involves adjusting production batch sizes and is related to just-in-time (JIT) delivery and lean manufacturing strategies. Without specific context, the correct answer cannot be determined, but typically such a change would require adjusting production technology or other related factors.

Step-by-step explanation:

The question implies that there's a need for a supplier to adjust their production batch size due to a request from a manufacturing company such as Ford. This form of control, reducing the batch size by a factor of four, follows the principles of just-in-time (JIT) delivery and lean manufacturing, which are business strategies designed to increase efficiency and reduce waste. The correct answer to the question would depend on the data provided (usually c, h, r, or s) but without context, it cannot be determined. Therefore, the question appears incomplete as it stands.

Now, if the supplier currently produces q parts per batch, and they need to reduce this by a factor of four, they would need to produce q/4 parts per batch. To accomplish this, they may need to reduce the scale of production technology or adjust other factors like cycle time or scheduling to accommodate smaller production runs. Economies of scale should also be considered, as the company may experience an increase in the cost per unit when reducing batch sizes.

In line with supply and demand, if the supplier's costs change due to the alteration in batch size, this may affect the overall supply of parts to the car manufacturer. For instance, in scenarios like a decrease in the price of steel, car manufacturers can supply a higher quantity of cars due to lowered production costs, demonstrating how the input cost affects supply.

User MichaelEvanchik
by
4.8k points
4 votes

Answer:

71 units

Step-by-step explanation:

Demand per month = 1000 (D)

Cost per part to supplier = $100

Annual holding cost to supplier = 25%

Changeover = 4 hours

Cost of Each hour spent on changeover = $250 = Setup cost (S)

EOQ = √{2DS/H}

= √{(2 * 1000/4 * 250)/100*0.25}

= 70.7

Modified Batch size = 70.7 = 71 units

User Derek E
by
4.9k points