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I would be glad if you possible answer this case study. 'A formwork company' (AFC) rents an average of 1000 formworks per day. Its customer keep a...
I would be glad if you possible answer this case study.
'A formwork company' (AFC) rents an average of 1000 formworks per day. Its customer keep a formwork for an average of 5 days for e 800 per day. AFC keeps an average of 10 days of demand at the ready-for rent storage location. For simplicity, let us consider one rental location. When customer return a formwork, they drop it off at the returns area, which has an average of 1000 formworks. A quick check at the return area determines whether the formwork needs maintenance or not. On average, 25% of the formworks need to be maintained while 75% do not. Formworks needing repairs are taken to the maintenance area, which has an average inventory of 1000 forworks. All formworks are taken to the cleaning area either directly or after being repaired, which has an average inventory of 2000 formworks. After cleaning and/or repairs, formworks are returned to the ready-for-rent storage area. Each repair costs e 900 per formwork while each cleaning costs e 100 per formwork. AFC leases its formworks at e 3000 per month per formwork from a specialized company. AFC has 100 employees on the payroll: it runs two 8 hour shifts per day of 50 employees (10 customer facing, 10 cleaning, 10 repair, 10 receive& check, 10 supervisor). Average fully loaded wage is e 13 per hour. AFC pays about e 45,000 per month in fixed facility rent, including utilities. Assume that one month has 30 days.
AFC is comparing two possible improvements: 1. Decrease the average inventory in the cleaning area from 2000 to 1000. 2. Decreasing the repair rate to 16%. 3. Assume that the effort that is required in each case is the same. Which change do you think will be more effective and why?
