Page 156 - Data Science Algorithms in a Week

140 Alfonso T. Sarmiento and Edgar Gutierrez

9,000
9,000
9,000
9,000

7,000
7,000
7,000
7,000
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30
Time (week)
Preforms WIP Level:-15%
Preforms WIP Level:-10%
Preforms WIP Level:-5%
Preforms WIP Level:+10%

Figure 8. Behavior of Preforms WIP Level due to changes in customer orders.

14,000
14,000
14,000
14,000

12,000
12,000
12,000
12,000
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30
Time (week)
Presses WIP Level:-15%
Presses WIP Level:-10%
Presses WIP Level:-5%
Presses WIP Level:+10%

Figure 9. Behavior of Presses WIP Level due to changes in customer orders.

The EP levels of the three inventory variables remain the same for a 10% increment
in customer orders. The reason is simple; the stabilization policy was reached by using
the maximum production capacity and orders over the original customer order rate are
considered backlog and therefore they do not affect the production rates and the stability.
Similarly, for a 5% decrease in customer orders, production is working close to
maximum capacity and the EPs remain the same. In the case where customer orders are
decreased by 10% and 15% the new EPs are reduced too but in a lower percentage that
the change in customer orders.