1) Production rate per hour = Time available/Processing time = 60/20 = 3 units per hour
2) Throughput rate per hour = Daily demand/Time available per day = 10/8 = 1.25 units per hour
3) Utilization = Throughput rate/Production rate = 1.25/3 = 0.42
4) Capacity per day = Number of machines*Total time available in minutes per day/Processing time = 2*8*60/20 = 48 units per day
1. Consider a single workstation comprising one machine. (i) What will be the production rate of...
A workstation consisting of 12 machines in parallel, each having a mean process time of 2 hours. The station works 16 hours a day in 2 shifts; each is 8 hours. There is one hour break in each shift. You need to produce a lot of 48 jobs per day. Calculate the capacity in jobs per day of this station. A workstation with 12 machines in parallel, each having a mean process time of 2 hours. The station works 16...
A manager is trying to decide whether to buy one machine or two. If only one machine is purchased and demand proves to be excessive, the second machine can be purchased later. Some sales would be lost, however, because the lead time for delivery of this type of machine is six months. In addition, the cost per machine will be lower if both machines are purchased at the same time. The probability of low demand is estimated to be 0.20...
A production manager wants to upgrade the manufacturing system by adding a new machine. He found that one of two machines can effectively be used; their cost data are given in Table Q3 below: Table Q3 Alternative Machines Cost Element M/C I M/C II First cost Anual Maintenance Operating cost/hr Useful life Salvage value £150,000 £3000 £1.6 6 years £10,000 £250,000 £3500 £1.2 8 years £25,000 Using an interest rate of 15% per year compounded annually, answer the following: What is the...
Tender Announcement of Vending Machines at MetroBus Stops Istanbul Metropolitan Municipality (IMM) declded to rent out spots at MetroBus stops for vending machines to meet traveler demands and increase revenue. To ensure transparency and equal treatment, a tenderwas published on IMM's website. UniVEND saw this opportunity and gave the proposal to IMM. UniVEND's proposal was accepted and the company started to operate in all metrobus stops. Now it is time for you to find optimal plan to locate the vending...
1.How much slack capacity does Athletic Kit have? Knitting the jerseys was an important aspect of the production process. AK used a variety of knitting machines, with the striped knitting machine being the most crucial one as it was able to produce all 40 different styles and colour combinations that the company offered (see Exhibit 4). Currently, AK operated nine of these machines and owned another two that were broken but could potentially be repaired for a cost of $25,000...
(This information applies to questions 21-25) Rocky Top hardwal pemancluringsteetbars. The process starts with raw material (carbon steel wire), then progresses sequentially through five steps using machines A to E, respectively (see diagram below). This is the only use that the five machines are put to. The hourly throughput rates (in Ibs/hour) for each machine are provided in the diagram below. Step 1 Step 4 Raw Material Step 2 B Step 3 C Step 5 E Market Demand D A...
Example 1: Life Force Ice Cream wants to expand their capacity by adding a new filling line for pints of super premium ice cream. What other source of financing could they use besides bank debt, cash or leasing? Example 2: Synergy Software wants to expand into 17,000 square feet of office space. There is a high variability of demand for their product and it looks like they can get a 5 year contract from their customer. Should they lease or...
Can you show the solution on the excel by showing the formulas? Tender Announcement of Vending Machines at MetroBus Stops Istanbul Metropolitan Municipality (IMM) decided to rent out spots at MetroBus stops for vending machines to meet traveler demands and increase revenue. To ensure transparency and equal treatment, a tender was published on IMM's website. UniVEND saw this opportunity and gave the proposal to IMM. UniVEND's proposal was accepted and the company started to operate in all metrobus stops. Now...
Part I – Process and Capacity Analysis Mortgage, Inc. processes loan applications in a “back-office” service facility. Each loan application must undergo a sequence of three separate processing activities before Mortgage, Inc. can make a decision to approve or decline the application. That is, a loan application first passes through Activity 1, then Activity 2, and finally Activity 3. Each activity has a fixed number of workers (given below). For example, there are three workers assigned to Activity 1 and...
PART I: Multiple Choice Write all answers to the following questions. No partial credit available. Consumption utility is composed of price and convenience. True or False? A firm reduces inefficiencies by making trade-offs. True or False? A firm can increase its profitability by: A. increasing costs and reducing price. B. moving away from the efficient frontier. C. increasing inefficiencies. D. reducing inefficiencies. Operations comes from the Latin word "opus," which means: A. activity. B. helping people. C. improvement. D. work....