A fruit canning plant has a single line for three different fruit types. Demand for each type of tin is reasonably constant at 50,000 per month (a month has 160 production hours). The tinning process rate is 1,200 per hour, but it takes 2 hours to clean and re-set between different runs. The cost of these changeovers (Co) is calculated at $250 per hour. Stockholding is calculated at $0.1 per tin per month. a. Based on the sample above, discuss how inventory can be controlled using a computer-based information system. b. Describe four different functions found on such a computer-based information system which the fruit canning plant would benefit from. c. Discuss how the fruit canning plant could apply the ABC analysis and how this might help with their overall quality management strategies. d. Discuss what operations philosophy method the fruit canning company could apply for planning and controlling to keep inventory costs down.
