The Approach to Evaluating Alternative Work Configurations Can Be Modeled

Essay

The approach to evaluating alternative work configurations can be modeled to provide more structure.To exemplify,a model is constructed to evaluate under what conditions the intermittent flow shop (IFS) will be selected in preference to the batch production of a job shop (JS).For the IFS,setup,takedown and changeover costs have to be amortized over the lot size that is run.The IFS produces N units at a cost of c dollars per unit with a fixed setup cost of S dollars.Compare that cost with the cost of setup for the job shop production process,S¢.The lot size is the same but the cost per unit,c¢ >
a.What is the choice when the lot size is N = 200?
b.What is the choice when the lot size is N = 400?
c.The cost comparison is shown here with some hypothetical numbers for costs and a lot size of N = 100.The costs are illustrated below.
IFS: (cN + S)/N = (3 × 100 + 500)/100 = $8.00 per unit made
JS: (c¢N + S¢)/N = (4 × 100 + 300)/100 = $7.00 per unit made
So,choose to use the job shop to make the 100 units.
Next,assume that the lot size is 500 units.IFS: (cN + S)/N = (3 × 500 + 500)/500 = $4.00 per unit made
JS: (c¢N + S¢)/N = (4 × 500 + 300)/500 = $4.60 per unit made
So,choose the IFS.
Now,assume that both setup costs are triple the original amount.