Littlefield Overview
MGT 9702 – SERVICE OPERATIONS I
LITTLEFIELD TECHNOLOGIES – OVERVIEW
Littlefield Technologies (LT) produces Digital Satellite System (DSS) receivers.
These receivers are assembled from kits of electronic components procured from a single supplier. The assembly process consists of four steps carried out at 3 stations called board stuffing, testing and tuning. The machines at these stations cost $90,000, $80,000, and
$100,000, respectively.
The first step consists of mounting the components onto PC Boards and soldering them. This is done at the board stuffing station. The digital components are then briefly tested at the testing station in step 2. In the third step, key components are tuned at the tuning station. Finally, the boards are exhaustively “final tested” in step 4 at the testing station before delivery to the customer. Every receiver passes final test.
Customers’ orders arrive randomly at the factory. Each order is for 60 receivers. When an order arrives it is matched up with 60 raw kits and becomes a “batch” (or, in other words, a “lot”). If an order arrives and there are less than 60 raw kits in the materials buffer, the order waits in the customer order queue pending arrival of raw kits. In addition, orders are not accepted if the total number of orders in the system (waiting for kits or in process) exceeds 100. Once all the receivers in an order are completed, the order is shipped immediately. A job is not shipped to its customer until all of the lots in the job are completed.
Raw kits are purchased from a single supplier and cost $10 per kit ($600 per order). There is also a fixed cost of $1000 per shipment of raw kits, independent of the shipment size. The supplier requires 4 days to ship any quantity of raw kits. An order for new raw kits is placed with the supplier when the
LITTLEFIELD TECHNOLOGIES – OVERVIEW
Littlefield Technologies (LT) produces Digital Satellite System (DSS) receivers.
These receivers are assembled from kits of electronic components procured from a single supplier. The assembly process consists of four steps carried out at 3 stations called board stuffing, testing and tuning. The machines at these stations cost $90,000, $80,000, and
$100,000, respectively.
The first step consists of mounting the components onto PC Boards and soldering them. This is done at the board stuffing station. The digital components are then briefly tested at the testing station in step 2. In the third step, key components are tuned at the tuning station. Finally, the boards are exhaustively “final tested” in step 4 at the testing station before delivery to the customer. Every receiver passes final test.
Customers’ orders arrive randomly at the factory. Each order is for 60 receivers. When an order arrives it is matched up with 60 raw kits and becomes a “batch” (or, in other words, a “lot”). If an order arrives and there are less than 60 raw kits in the materials buffer, the order waits in the customer order queue pending arrival of raw kits. In addition, orders are not accepted if the total number of orders in the system (waiting for kits or in process) exceeds 100. Once all the receivers in an order are completed, the order is shipped immediately. A job is not shipped to its customer until all of the lots in the job are completed.
Raw kits are purchased from a single supplier and cost $10 per kit ($600 per order). There is also a fixed cost of $1000 per shipment of raw kits, independent of the shipment size. The supplier requires 4 days to ship any quantity of raw kits. An order for new raw kits is placed with the supplier when the