Transcript Manufacturing Systems - Technion – Israel Institute of

Gilad Benski, [email protected]
21.07.2015
1
Topics to Cover
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Topics to cover
◦ This week presentations
◦ Mass Production
◦ New assignment
Gilad Benski, [email protected]
21.07.2015
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This week

Exercise
Last week
Comments
Homework
This week:
◦ Korea -
Anna Shapira
◦ Brazil -
Stav & Dvir
Gilad Benski, [email protected]
21.07.2015
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This week

Exercise
Last week
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Homework
Mass Production
◦ The Cost Model
◦ Supply / Demand Curve
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Lean Production
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Just in Time (JIT)
Gilad Benski, [email protected]
21.07.2015
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This week
Exercise
Last week
Comments
C0 C1 C2 anmy-
Gilad Benski, [email protected]
Homework
fixed costs
variable cost/car
total market size
price sensitivity of price
car manufactured
car demanded
price/cost
21.07.2015
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This week
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Exercise
Last week
Comments
Homework
Solve:
4.1. A manufacturer is producing a high-volume product for a mass production market.
a. Given, the fixed costs per year C0 = $3,000M/year, and C1 = $6,000. Plot the car price
(Car's Mfg Cost) y = f(n) using Eq. (4-1): y = C1 + C0/n in the range n = 100,000 to
500,000 cars per year. (Draw price on the vertical axis and quantity on the horizontal
axis to obtain the production curve.) What are your conclusions?
b. If the number of customers who purchased a car is m= 500,000, y = $16,000 and
a = 2, calculate C2 from the Demand Curve (Car' Sell Price) expressed by Eq. (4-2):
a
m = C2/y . Repeat for a = 3. Plot the demand curves on the same scale as the
production curve in item a.
Gilad Benski, [email protected]
21.07.2015
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This week
Exercise
Last week
Comments
Gilad Benski, [email protected]
Homework
21.07.2015
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This week
Exercise
Last week
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•No. of buyers.
•Income.
•Fashion.
•Price
Homework
•Technology
improvement.
•Price
change in demand
change in supply
Gilad Benski, [email protected]
21.07.2015
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This week
Exercise
Last week
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Homework
http://en.wikipedia.org/wiki/Supply_and_demand
1. If demand increases and supply remains unchanged, a shortage occurs,
leading to a higher equilibrium price.
2. If demand decreases and supply remains unchanged, a surplus occurs,
leading to a lower equilibrium price.
3. If demand remains unchanged and supply increases, a surplus occurs,
leading to a lower equilibrium price.
4. If demand remains unchanged and supply decreases, a shortage occurs,
leading to a higher equilibrium price
http://answers.yahoo.com/question/index?qid=20071031052810AAW2bT4
PlayStation 2: Low price. High demand  Shortage.
Yet people, who had the money, were willing to pay much for a piece.
http://www.investopedia.com/university/economics/economics3.asp
A shift in the demand : Beer suddenly became the only type of alcohol
available for consumption.
A shift in the supply: A natural disaster caused a mass shortage of hops; beer
manufacturers would be forced to supply less beer for the same price.
Gilad Benski, [email protected]
21.07.2015
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This week

Exercise
Last week
Comments
Homework
Referring to last week’s presentations:
◦ Personalized Med’ - Doris Pitilon, Dima Khalilov
◦ Singapore -
Kobi Swissa, Eli Veksler
Gilad Benski, [email protected]
21.07.2015
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This week

Exercise
Last week
Comments
Homework
Some comments:
◦ Keep doing it GREAT!!
◦ Structure
◦ Names / Credits
Gilad Benski, [email protected]
21.07.2015
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This week

Exercise
Last week
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Homework
Previous Homework
Innovations: Successful or not?
Gilad Benski, [email protected]
21.07.2015
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This week
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4.2
Exercise
New Assignment
Last week
Comments
Homework
(due date 15Dec13 ):
◦ Based on Q4.2 (Prof. Koren’s book), solve the following.
Assume that a modified Car Selling Price's equation (Eq.4-2), is given by m = C2 – a·y, where
C2 denotes the total market size and a is the price sensitivity of demand. Let C0=3x109, and
C1=5,000, in the Car Mfg Cost's equation, Eq.4-1, (y = C1 + C0/n) and C2=450,000 and a=10 in
the modified Eq.4-2 (see above).
a. For the range of 50,000-350,000 cars produced, plot the number of cars produced vs (i) selling
price per car and (ii) production cost per car. Let the number of cars produced be on the x-axis
and the price/cost per unit shown on the y-axis.
b. (i) Are there any intersection points?
(ii) What are their values?
(iii) What is the meaning of the range between these points?
(iv) What is the meaning of the range/s outside these points?
(v) What is the meaning of a situation where there are no intersection points?
c. How many cars should be produced to maximize the profit per car? Please explain how you get to
this result. Consider it as an 'Engineering' type of question (not a 'Mathematical' one).
Gilad Benski, [email protected]
21.07.2015
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