Matching supply with Demand (3rd Edition) - Question 10.2
a)
Work is released in process at 5 units per hour.
It will arrive at station 2 at the rate (5*80%) 4 units per hour
Capacity of Station 2 = 12 units per hour (5 minutes per unit)
Utilization = 4/12 = 0.33
b)
Since the processing time for Station 1 is the highest (capacity is lowest) hence station 1 will be the Bottleneck.
c)
Bottleneck is station 1.
Capacity of station 1 = 60/6 = 10 units per hour.
Since the capacity of bottleneck station is 10 units per hour hence process capacity will be equal to bottleneck capacitty.
Process Capacity = 10 units per hour.
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