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A process has two stages. In the first stage, a machine makes two components, call them type A and B. It takes 250 seconds to

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Answer #1

(a)

Total time to process 3,750 units of A and B = (setup time) + processing time = (250 x 2) + 3,750*0.6 + 3,750*0.6 = 5,000 seconds

So, the capacity is 3,750 units in 5,000 seconds = 3750 x 60 / 5000 unit per minute = 45 units per minute

(b)

If there is no setup,

Total time to process 3,750 units of A and B = processing time = 3,750*0.6 + 3,750*0.6 = 4,500 seconds

So, the capacity is 3,750 units in 4,500 seconds = 3750 x 60 / 4500 unit per minute = 50 units per minute

(c)

Note that the capacity of the second stage is only 30 units per minute and hence this is the bottleneck stage and the largest possible capacity is 30 units per minute.

The corresponding batch size = 30*(250*2) / (60 - 30*2*0.6) = 625 units

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