New JIT program

  c. As part of its new JIT program, the company has signed a long-term contract with its customers and the company will take orders electronically for the chemical. The optimal lot size (production order quantity) will drop to 40,000 litres. Determine the new setup cost per order and the number of orders (setups). What is the total annual cost of managing the inventory with the new policy? What is the setup time in hours, based on a $25 per hour setup labour cost with the new policy? 3. You are asked to determine a location for a recycling depot serving three urban centres. They are: 20 marks 1. Smallville, population 1,100, at grid location (1.8, 2.8); 2. Bigburg, population 1,900, at grid location (3.5, 8.1); and 3. Middleton, population 1,350, at grid location (7.8, 6.2). a) Determine the centre of gravity of the three locations. b) It is determined that planners would prefer to have the depot in either Bigburg or Middleton (although it will serve all three centres). Using metropolitan distances, determine the loaddistance scores for both Bigburg and Middleton and make a recommendation as to which town should have the depot. c) You are asked to provide input on a layout for a new office. The old layout is thought of as being inefficient. You are asked to redesign the layout and evaluate your redesign using load distance scores. The current layout is shown below. The overall shape cannot change; you can merely move the individual departments around. (8 marks)