A Modern Approach to Operations Management by Ram Naresh Roy

By Ram Naresh Roy

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6. Warehouse layout: addresses trade-offs between space and material handling. The first three are called the basic layouts. They are differentiated by the types of work flows they entail; the work flow, in turn, is dictated by the nature of the product. Services have work flows, just as manufacturing do. Often the work flow is paper, information, or even the customers. The right layout for an organization will improve productivity, the quality of the product or service, and delivery rates. Because only a few of these layouts can be modeled mathematically, layout and design of physical facilities are still something of an art.

The resultant coordinates then constitute the center of gravity for that grid. 5) Once determined, the Xc, Yc coordinates constitute a starting point for a new site. Locations in that vicinity may then be evaluated, changes suggested, and perhaps some recalculations done before the final choice is made. 3. 5 shows eight market locations to which a manufacturer of wooden windows expects to ship its products. 5. Using the center of gravity method, (a) find the Xc and Yc coordinates, and (b) suggest a possible warehouse location.

The products are currently distributed through plants at X and Y. 7. 7 Cost to ship to distribution Plant at Production Plants X Y Z A $ 10 $ 14 $8 B 12 10 12 C 8 12 10 The production capacities at A, B, C are 20, 30, and 40 unit loads per week respectively. Management feels that a plant at Z could absorb 20 units per week, with X and Y claiming 40 and 30 units per week respectively. Determine the optimal distribution arrangement and cost if the Z site is selected. Solution. We will use the north-west corner (NWC) method for the initial allocation and the stepping-stone method for the final solution.

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