A production process has two machines. The first machine has a capacity of 500 units per...
A production process has two machines. The first machine has a capacity of 500 units per hour and the second machine has a capacity of 350 units per hour. Demand for the process is 100 units per hour.
(a) In a push process, what would be the utilization of the first machine?
Utilization of the first machine is ___%?
(b) How would the situation change with a pull system?
The utilization would drop to ___%?
Homework Answers
A. ) push system means producing at maximum capacity which means 500 units will be produced at 100% utilization rate.
B.) In pull system, demand decides the production rate.
Demand is 100 units.
First machine alone can produce 100 units even if it slowed down to the capacity of 2and machine.
Utilization of first machine(in pull system) = 100/ 500 = 20%.
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