The following jobs are waiting to be processed at Rick Solano’s machine center. Solano’s machine center has a relatively long backlog and sets a fresh schedule every 2  weeks, which does not disturb earlier schedules. Below are the jobs received during the previous 2 weeks. They are ready to be scheduled today, which is day 241 (day 241 is a work day). Job names refer to names of clients and contract numbers.

a) Complete the following table. (Show your supporting calculations.)

b) Which dispatching rule has the best score for flow time?

c) Which dispatching rule has the best score for utilization metric?

d) Which dispatching rule has the best score for lateness?

e) Which dispatching rule would you select? Support your decision.

Discount-Mart (see Problem 16.8), as part of its new Lean program, has signed a long-term contract with Specialty Lighting and will place orders electronically for its halogen lamps. Ordering costs will drop to $.50 per order, but Discount-Mart also reassessed its carrying costs and raised them to $20 per lamp.

a) What is the new economic order quantity?

b) How many orders will now be placed?

c) What is the total annual cost of managing the inventory with this policy?

Problem 16.8

Discount-Mart, a major East Coast retailer, wants to determine the economic order quantity (see Chapter 12 for EOQ formulas) for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting Manufacturers in Atlanta. Annual demand is 2,000 lamps, ordering cost per order is $30, and annual carrying cost per lamp is $12.

a) What is the EOQ?

b) What are the total annual costs of holding and ordering (managing) this inventory?

c) How many orders should Discount-Mart place with Specialty Lighting per year?