Name: Nguyễn Lưu Thanh Thảo – IEIEIU17018

Subject: Facility layout

Date: 21-09-2020

HOMEWORK 1 - Chap2
Exercise 2.13

1. Current:

I3= 1000/(1-d3) = 1000/(1-0.07) = 1075 (unit) = O2

I2= 1000/[(1-d3)(1-d2)] = 1000/[(1-0.07)(1-0.05)] = 1132 (unit) = O1

I1= 1000/[(1-d3)(1-d2)(1-d1)] = 1000/[(1-0.07)(1-0.05)(1-0.03)] = 1167 (unit)

Scrap cost for process 1: (I1 – O1) x $5 = (1167 – 1132) x 5 = $175

Scrap cost for process 2: (I2 – O2) x $10 = (1132 – 1075) x 10 = $570

Scrap cost for process 3: (I3 – O3) x $15 = (1075 – 1000) x 15 = $1125

 Total scrap cost = Scrap cost for process 1 + Scrap cost for process 2 + Scrap cost for process 3
= 175 + 570 + 1125
= $1870
2. Reversed:

I3= 1000/(1-d3) = 1000/(1-0.03) = 1031 (unit) = O2

I2= 1000/[(1-d3)(1-d2)] = 1000/[(1-0.03)(1-0.05)] = 1085 (unit) = O1

I1= 1000/[(1-d3)(1-d2)(1-d1)] = 1000/[(1-0.03)(1-0.05)(1-0.07)] = 1167 (unit)

Scrap cost for process 1: (I1 – O1) x $5 = (1167 – 1085) x 5 = $410

Scrap cost for process 2: (I2 – O2) x $10 = (1086 – 1031) x 10 = $550
Scrap cost for process 3: (I3 – O3) x $15 = (1031 – 1000) x 15 = $465

 Total scrap cost = Scrap cost for process 1 + Scrap cost for process 2 + Scrap cost for process 3
= 405 + 550 + 465
= $1415

Exercise 2.14

1. Current:

We have 0.8 = 1 – dR3, 0.75 = 1 – dR2, 0.6 = 1 – dR1

 I1= 1040 (unit)

IR1 = I1d1 = 1040x0.03=31 (unit)

IR2 = I2d2 = I1d2[(1-d1) + d1(1-dR1)] = 51 (unit)

IR3 = I3d3 = I1d3[(1-d1) + d1(1-dR1)] [(1-d2) + d2(1-dR2)] = 71 (unit)

Total rework cost = 2 x IR1 + 3 x IR2 + 4 x IR3 = 2x31 + 3x51 +4x71 = $499

2. Reversed

We have 0.8 = 1 – dR3, 0.75 = 1 – dR2, 0.6 = 1 – dR1, d1 = 3%, d3 = 7%

 I1= 1048 (unit)

IR1 = I1d1 = 1048x0.03= 73 (unit)

IR2 = I2d2 = I1d2[(1-d1) + d1(1-dR1)] = 51 (unit)

IR3 = I3d3 = I1d3[(1-d1) + d1(1-dR1)] [(1-d2) + d2(1-dR2)] = 30 (unit)

Total rework cost = 2 x IR1 + 3 x IR2 + 4 x IR3 = 2x73 + 3x51 +4x30 = $419

Therefore, Reversed scrap rate for process 1 and 3 will be better because of less rework cost. This result
is also agreement with Problem 2.13 with total scrap cost is $1415.
Exercise 2.15

Exercise 2.16
Exercise 2.27

A foundry has received an order for 20 custom-designed castings. The casting process costs $700 per
unit scheduled. If a casting is good, then it is machined to specifications at an added cost of $500 per
unit. If a casting is not sold, it has a recycle value of $300 The customer has indicated a willingness to pay
$2000 per casting for 20 acceptable castings; the customer has also agreed to pay $1500 each for one or
two additional castings. However, the customer is unwilling to purchase fewer than 20 or more than 22
castings. Based on historical records, the following probability distributions have been estimated. How
many castings should be scheduled for production to maximize expected profit? What is the probability
of losing money?
 300𝑄 𝑖𝑓 𝑥 ≤ 19
R(Q,x) = {2000 ∗ 20 + 1500(𝑥 − 20) + 300(𝑄 − 𝑥) 𝑖𝑓 20 ≤ 𝑥 ≤ 22
2000 ∗ 20 + 1500 ∗ 2 + 300(𝑄 − 22) 𝑖𝑓 23 ≤ 𝑥 ≤ 𝑄

700𝑄 𝑖𝑓 𝑥 ≤ 19
C(Q,x) = { 700𝑄 + 500𝑥 𝑖𝑓 20 ≤ 𝑥 ≤ 22
700𝑄 + 500 ∗ 22 𝑖𝑓 22 ≤ 𝑥 ≤ 𝑄

−400𝑄 𝑖𝑓 𝑥 ≤ 19
P(Q,x) = {10000 + 700𝑥 − 400𝑄 𝑖𝑓 20 ≤ 𝑥 ≤ 22
25400 − 400𝑄 𝑖𝑓 23 ≤ 𝑥 ≤ 𝑄

E[P(Q,x)] = ∑𝑄 22 𝑄
𝑥=0 −400𝑄 𝑝(𝑥) + ∑𝑥=20(700𝑥 + 10000)𝑝(𝑥) + ∑𝑥=23 25400𝑝(𝑥)

𝑄
= −400𝑄 + ∑22
𝑥=20(700𝑥 + 10000)𝑝(𝑥) + ∑𝑥=23 25400𝑝(𝑥)

Exercise 2.34

• Express the revenue functions from producing Q units, of which x is good cast parts:
800Q if x < 45
R(Q,x)={ (1)
800*45 − 2000(Q − 50) if 50 ≤ x ≤ Q
Here, revenue function is R(Q,x), quantity of units is Q, and number of good cast parts is x.
 • Express the casting cost of producing Q units, of which x is good cast parts:
C(Q,x)={2,000*50+800Q if 50≤x≤Q (2)
Here, the casting cost is CQ,x, quantity of units is Q, and number of good casting parts is x.
• Express the profit function from producing Q units, of which x is good casting parts:
P(Q,x)=R(Q,x)-C(Q,x) (3)
Here, the profit function is P(Q,x), revenue function is R(Q,x), and the casting cost is C(Q,x).
• Substitute equation (1) and equation (2) to equation (3):
800Q if x < 45
P(Q,x)= { (4)
36,000 − 1,200*Q if 50 ≤ x ≤ Q
Here, the expected profit from producing Q units is E(P,Q), the profit function is P(Q,x), and probability
of producing x good units is px.
• Substitute equation (4) to find E(P,Q):
Hence, the economic lot size of casting parts is $64,315.

Exercise 2.40

Use a multiple activity chart to illustrate how one operator can tend machine A, machine B, and

machine C during a repeating cycle, based on the following data: aA = 2 min; aB = 2.5 min; aC, =

3 min; bA = 1 min; bB = 1 min; bC= 1.5 min; tA = 7 min; tB = 8 min; and tC= 9 min. What is the
length of the repeating cycle?

• Calculate the length of the repeating cycle:

repeating cycle length=max {(aA+bA+aB+bB+aC+bC; aA+tA; aB+tB; aC+tC )}

Here, concurrent activity time of machine A, B, and C are aA, bA and aC respectively, independent
operator activity time of machine A, B, and C are bA, bB and bC, respectively, and independent
machine activity time of machine A, B, and C are tA, tB and tC, respectively. Substitute 2 min for aA, 2.5
min for aB, 3 min for aC, 1 min for bA, 1 min for bB, 1.5 min for bC, 7 min for tA, 8 min for tB, and 9
min for tC.
repeating cycle length=max {2+1+2.5+1+3+1.5; 2+7; 2.5+8; 3+9}
=max {11; 9; 10.5; 12}
=12 min
Hence, the length of the repeating cycle is 12 min
Since the length of repeating cycle of machine C is maximum, machine C determines the repeating cycle.
Also, the operator has idle time of 1 minute during a repeating cycle. Machine A and B have 3 and 1.5
minutes of idle time, respectively, whereas repeating cycle of machine C is zero minute.

Exercise 2.41

a)

b)

c)
d)

e)