IE 484

HW #1
12:30 PM, Thursday, September 10, 2015
Please show your work in your answers. Turn in a hard copy before the class begins.

Solve the following problems in Chapter 2: 10, 11, 12, 13 (d, e, f), 15

Hints
P12. Modify formula 2.2 (not 2.1) to include the rework rate. Assume all the reworked
parts pass the process, i.e., no more scrap from rework.
P13. Both the candy and the new toffee visit A > B > C > D.
a. The existing machines are currently used to produce one type of candy. Only 50% of
available time of the existing machines will be used to produce the new toffee.
c. Setup time is required when the product is switched (candy to toffee) in the existing
machine. Even though additional machines are dedicated to toffee, setup is still required
when the first shift begins every day.
d. Use the serial yield/loss model. Find the nearest integer as the input to each process.
e. Use formula 2.1. For each type of equipment, calculate 1) P = required production rate
per day; 2) = available time of the existing machine per day in seconds; 3) =
available time of an additional machine. Then, for each type of equipment, you can
calculate available daily capacity (the number of products the machine can produce per
day) for the existing, or each additional machine by /t. Finally, compare P to /t of
the existing machine; if P is smaller than /t, the current capacity is sufficient. If not,
calculate the number of additional machines so that the total capacity is greater than P.
f. This question is similar to 13.e, but the available times are increased by 4 hours. Assume
that the existing machine is 100% available only during the 4-hour overtime. Also
assume the machines continue working between shifts, i.e., only one setup is required for
each machine every day. In this question, you will see the company still need to buy
additional machines. Compare purchasing cost for 13.e with [purchasing cost + overhead
cost + overtime cost/year] for 13.f. For simplicity, we will not consider any other costs.

P15. You dont need to find the optimal solution. Just set up the LP model in open form (like
the model in slide #39).
1) Constraint 2.6: MH is used to transport parts between operations. For example, a P3
needs to be transported twice, between O4 and O7, and between O7 and O8. Therefore,
y31 >= 2*NP3.
2) Constraint 2.4: NO_i = sum_k{NP_k * O_ik}, where O_ik=1 if O_i is required to produce
P_k, 0 otherwise. For example, NO2 = 20 (for P1) + 15 (for P2) + 15 (for P5) = 50.
3) Both MH1 and MH2 cost $100,000. They are available 5000 min.

Solution
10. Using formula 2.1, we find that
10000*(10/3600)/(0.95*16)=1.82 or 2 punch presses.

the

manufacturer

must

purchase

11. With a scrap rate of 10% and using formula (2.2), we find that the manufacturer needs
11112*(10/3600)/(0.95*16)=2.03 or 3 punch presses. (10000/(1-0.1) = 11112)

12. The formula Nil = Nol /(1-Sl) is modified as Nil = Nol /[1-Sl (1-RWl)] where RWl is the rework
rate. Because some of the scrap can be reworked, the daily production rate should be lower
than before. In fact, the number of units to be produced per day is 10000/(1-0.1*(1-0.7))=10310
units. Using the value of 10310 as the daily production rate and formula (2.1), we get NM = 1.88
or 2 punch presses. Clearly, the answer is different from the one in Exercise 11, but the same as
that in Exercise 10.

13d. Based on the information provided, we do a backward calculation (from process D) of the
input units required at each process using formula (2.2). Note that the output at a process is
equal to the input units at the succeeding process. As required, output units at D must be
1,000,000.
A
B
C
D
Setup
1800
2700
600
1000
Processing time
25
4
2
4
Scrap rate
0.1
0.05
0.01
0.01
Output
1074004.26
1020304
1010101
1000000
Input
1193338.07
1074004
1020304
1010101

13e.
A
B
C
4773.35
4296.02
4081.22
= 1193338/250days
Avail. time/day for 1st machine
12600
11700
13800
= 8hr * 3600sec * 0.5 1800 sec
Avail. time/day for add. Machines 27000
26100
28200
= 8 * 3600 1800 sec
Avail. capa./day on 1st machine
504
2925
6900
= 12600sec / 25sec
Avail. capa./day on add. machines 1080
6525
14100
= 27000sec / 25sec
# of add. machines required
4
1
0
Cost per machine
50000
200000
100000
Total cost
200000
200000
0
Required daily production rate

D
4040.40
13400
27800
3350
6950
1
100000
100000

Therefore, the total cost to purchase additional machines is $500,000.

** Some students may subtract the setup time from numerator of the NM formula. The result
should be different but make sense. Dont penalize for that.
i.e. NM = [tP (required prod time) + setup time] / [machine available time]
instead NM = [tP (required prod time)] / [machine available time setup time]

13f. If half of second shift is used, additional pieces of each type of equipment must still be
purchased as shown below. Note that the new machines are available for 12 hours, whereas the
existing ones for 8 hours.
A
B
4773.35
4296.02
27000
26100
= 12600 + 4*3600 sec
Avail. time/day for add. machines 41400
40500
= 12 * 3600 1800 sec
Avail. capa./day on 1st machine
1080
6525
= 27000 / 25
Avail. capa./day on add. machines 1656
10125
= 41400 / 25
# of add. machines required
3
0
Cost per machine
50000
200000
Total cost
150000
0
Required daily production rate
Avail. time/day for 1st machine

C
4081.22
28200

D
4040.40
27800

42600

42200

14100

6950

21300

10550

0
100000
0

0
100000
0

Total cost is $150,000 (additional machines) + $10,000 (overhead) + $20 * 4hr * 15 employees *
250 days (overtime) = $460,000. So it is better to operate the (half) second shift.

15. The LINDO model is setup and solved as shown below. Note from the RHS of constraints
(2.4)-(2.8) that we have taken into consideration the fact that the products must be transported
for the intermediate operations. For example, part P1 needs to be transported from a machine
doing the first operation to another doing the second operation and then to a third machine for
the last operation. We ignore loading/unloading for all part types to be done by another device.
MIN 140000 NM1 + 192000 NM2 + 85000 NM3 + 260000 NM4 + 100000 NMH1
+ 100000 NMH2 + 20 X11 + 15 X12 + 40 X13 + 21 X21 + 12 X31 + 35 X33 + 12 X41
+ 25 X43 + 10 X53 + 8 X54 + 8 X62 + 5 X64 + 12 X72 + 15 X82 + 8 X84 + 50 Y11 + 55 Y12
+ 65 Y21 + 70 Y22 + 65 Y31 + 60 Y42 + 50 Y51 + 50 Y52
SUBJECT TO
2) X11 + X12 + X13 >= 20
3) X21 >= 50
4) X31 + X33 >= 35
5) X41 + X43 >= 45
6) X53 + X54 >= 30
7) X62 + X64 >= 25
8) X72 >= 20
9) X82 + X84 >= 30
10) - 5000 NM1 + 18 X11 + 15 X21 + 4 X31 + 8 X41 <= 0
11) - 5000 NM2 + 17 X12 + 8 X62 + 20 X72 + 15 X82 <= 0
12) - 5000 NM3 + 12 X13 + 19 X33 + 12 X43 + 10 X53 <= 0
13) - 5000 NM4 + 5 X54 + 12 X64 + 12 X84 <= 0
14) Y11 + Y12 >= 40
15) Y21 + Y22 >= 45
16) Y31 >= 40
17) Y42 >= 20
18) Y51 + Y52 >= 30
19) - 5000 NMH1 + 50 Y11 + 70 Y21 + 35 Y31 + 25 Y51 <= 0
20) - 5000 NMH2 + 55 Y12 + 70 Y22 + 60 Y42 + 50 Y52 <= 0
21) 140000 NM1 + 192000 NM2 + 85000 NM3 + 260000 NM4 + 100000 NMH1
+ 100000 NMH2 <= 850000
END
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