Question

1.CAPACITY PLANNING
1.1 In what case should capacity plan be revised?

2.SUPPLIER MANAGEMENT
2.1 How can suppliers (who wants highest price) and buyer firm (who wants lowest cost) be partners?

3.LEARNING CURVE
There are 2 firms: Company A and Company B.

3.1 Company A took 150 hours to produce its first unit.
This month it wants to product 500 units.

Using 80% learning curve, how many hours will it
take to produce those 500 units?

3.2 Comany B also produced 500 units.

However, it took B only 50 hours to produce its first unit.
What was was B's learning curve?

Answer 1

• Answer:

1. CAPACITY PLANNING - The capacity planning to be revised in below cases

• When there is a high/ large increase in the product demand.
• When there is major decrease in the product demand
• When there is increase in productivity due to introduction of new technology.
• When there is launch of new product which has low or high lead time compared to the old product
• When there is a change in the resources/ workers to run the production line.
• When there is issues in the supply chain and delays in parts is high.

2. SUPPLIER MANAGEMENT - The suppliers and buyers can become partner on following conditions

• Supplier is able to manage the buyer requirements and both are agree to work together with their term and conditions.
• Buyer is in urgent needs of the parts , then he will buy the price at high cost.
• When the supplier is in urgent need of supply of products, then he will partner with the buyer at low cost.
• It is the stakle of either supplie ror buyer which can make them partner together.

3 .LEARNING CURVE -There are 2 firms: Company A and Company B.

3.1 - Since Company A took 150 hours to produce its first unit.This month it wants to product 500 units.

Then one unit takes days = 150/24 = 6.25 days. (Company A takes 6.25 days for one unit)

Then for 500 units = 500*6.25 =3125 days

Then for 500 units, the hours needed will be = 3125 * 500 = 75000 hours......Answer

3.2 Comany B also produced 500 units. - B took only 50 hours to produce its first unit. The B's learning curve is three times better than the learning curve of the Company A.

Learning curve of Company B is three times better than the learning curve of Company A....answer