Trame incorporated makes custom air conditioning systems. They take pride in get

Question

Trame incorporated makes custom air conditioning systems. They take pride in getting orders to customers quickly; however, more important to them is being honest with customers about the delivery date of their order. The lead time is the time it will take from accepting the order until it is completed, and it is influenced by orders currently in process. To aid the sales force in setting realistic delivery dates and to improve scheduling, the production department wants to develop a model to predict leadtime. The following table contains 32 observations on the time (in hours) to complete a job, given the number of jobs currently in process. What model would you suggest? Justify your answer. If there are five jobs in the shop, what is your estimate for the lead time of an arriving job?

Explanation / Answer

Solution :

The model suitable to predict the lead time for the data given is "Deterministic static model". This model is suitable because it is possible to determine the time required to complete a job , given the number of jobs currently in progress .

If there are 5 jobs in the shop , the estimate of leadtime of an arriving job is as follows

T = QN / (1+a) D

D = average output rate ( example 10)

Q = batch size ( example 10)

N - = number of cells ( example 2)

a = margin ( example 1)

Lead time = 10 X 2 / ( (1+1) 10

Lead time = 20 / 20

Lead time = 1 hour

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