A rapid modeling software package has been used to optimize the performance of a manufacturing cell for a permanent mold foundry production facility. Using the production data, scrap rate and the customer demand, the model finds the optimum number of workers, casting machines, and the average work-in-process to meet the customer's order.Using the "what if" capabilities of the software, the optimum lot size and the lead time can be estimated. These findings are important for MRP (Material Requirements Planning) systems. Because MRP systems assume the lead time and lot size for schedulingand ordering dependent-demand items, inaccurate data for the lead time and lot size could lead to excessive buildup of work-in-process. Thus, the production cost for the finished castings could be excessively high.The model shows that the work-in-process and the lead time could be substantially reduced, if the lot size of each product is reduced. A case study has been given, to illustrate the applicability of the rapid modeling software package.
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