Question

OVERWORKED INC has 3 resources (Resource A, Resource B and Resource C) in its production process. The production process involves 3 products (Product A, Product B and Product C) being processed through these 3 resources. Currently, there is demand for 800 units of Product A, 1,200 units of Product B and 200 units of Product C per day. The processing times for each product at different resource levels is given in the table below:

	Product A	Product B	Product C
Resource A	0.72 minutes	0.72 minutes
Resource B	1.584 minutes		1.584 minutes
Resource C	1.584 minutes		1.584 minutes

Product C is not processed at Resource A. Product B is not processed at Resource B and Resource C.

Assume that each work day has 24 hours.

a) Find the implied utilization for Resource A.

b) Find the implied utilization for Resource B.

c) Find the implied utilization for Resource C.

d) What is the highest implied utilization.

e) Find the maximum daily flow rate of Product A

f) Find the maximum daily flow rate of Product B

g) Find the maximum daily flow rate of Product C

h) Find the actual daily flow rate of Product A

i) Find the actual daily flow rate of Product B

j) Find the actual daily flow rate of Product C

k) Find the daily process capacity

Assuming that demand for each of the 3 products (Product A, Product B and Product C) changes to 100 units per day, answer the following questions:

l) Find the maximum daily flow rate of Product A

m) Find the maximum daily flow rate of Product B

n) Find the maximum daily flow rate of Product C

o) Find the actual daily flow rate of Product A

p) Find the actual daily flow rate of Product B

q) Find the actual daily flow rate of Product C

Answer 1

(Note: As per an organizational policy of Chegg for the subject matter experts, for the questions involving multiple subparts, we can answer only up to the maximum of the first four subparts (Here, a to d) out of the multiple subparts, unless the user has specified particular subpart/s to be answered. Kindly, do not down-vote for not answering the remaining subparts.)

Solution:

We will find the implied utilization rates (%) for all of the five resources as mentioned in the below table:

(Rounded to 2 decimal places)

Calculation Steps:

Step 1: Col 6 = Available Time (Min / Day) = Col 1 X Col 2

Step 2: Col 7 = Capacity Required for Product A (Min / Day) = Demand (A) X Col 3 = 800 X Col 3

Step 3: Col 8 = Capacity Required for Product B (Min / Day) = Demand (B) X Col 4 = 1200 X Col 4

Step 4: Col 9 = Capacity Required for Product C (Min / Day) = Demand (C) X Col 5 = 200 X Col 5

Step 5: Col 10 = Workload (Min) = Col 7 + Col 8 + Col 9

Step 6: Col 11 = Implied Utilization (%) = ( Col 10 / Col 6 ) X 100

Thus,

Answer a: The implied utilization for Resource A = 100 %

Answer b: The implied utilization for Resource B = 110 %

Answer c: The implied utilization for Resource C = 110 %

Answer d: As per the above calculations, we conclude that the highest implied utilization = 110 %

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