Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 12, Problem 3.1Q
Summary Introduction

To find:The number of railcars to be placed in two-unit trains so that a thin but sufficientsupply of coal between the mine and plant can be maintained.

Introduction:The production system of every company or organization must ensure that an adequate flow of inventory is maintained. The flow of inventory is managed by reorder point systems where the inventory levels are monitored so that when the stock drops to a certain minimum point, said as reorder point, the next stock can be made ready.

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The wheat harvesting season in the American Midwest is​ short, and farmers deliver their truckloads of wheat to a giant central storage bin within a 2​-week span. Because of​ this, wheat-filled trucks waiting to unload and return to the fields have been known to back up for a block at the receiving bin. The central bin is owned​ cooperatively, and it is to every​ farmer's benefit to make the​ unloading/storage process as efficient as possible. The cost of grain deterioration caused by unloading delays and the cost of truck rental and idle driver time are significant concerns to the cooperative members. Although farmers have difficulty quantifying crop​ damage, it is easy to assign a waiting and unloading cost for truck and driver of $17 per hour. During the 2​-week harvest​ season, the storage bin is open and operated 16 hours per​ day, 7 days per​ week, and can unload 34 trucks per hour according to a negative exponential distribution. Full trucks arrive all day long​ (during the…
The wheat harvesting season in the American Midwest is short, and farmers deliver their truckloads of wheat to a giant central storage bin within a 2-week span. Because of this, wheat-filled trucks waiting to unload and return to the fields have been known to back up for a block at the receiving bin. The central bin is owned cooperatively, and it is to every farmer’s benefit to make the unloading/storage process as efficient as possible. The cost of grain deterioration caused by unloading delays and the cost of truck rental and idle driver time are significant concerns to the cooperative members. Although farmers have difficulty quantifying crop damage, it is easy to assign a waiting and unloading cost for truck and driver of $18 per hour. During the 2-week harvest season, the storage bin is open and operated 16 hours per day, 7 days per week, and can unload 35 trucks per hour according to an exponential distribution. Full trucks arrive all day long (during the hours the bin is open)…
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