A 16-station transfer line can be divided into two stages by installing a storage buffer between stations

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A 16-station transfer line can be divided into two stages by installing a storage buffer between stations 8 and 9. The probability of failure at any station is 0.01. The ideal cycle time is 1.0 min and the downtime per line stop is 10.0 min. These values are applicable for both the one-stage and two-stage configurations. The downtime should be a considered constant value. The cost of installing the storage buffer is a function of its capacity. This cost function is Cb = $0.60b/hr = $0.01b/min, where b = the buffer capacity. However, the buffer can only be constructed to store increments of 10 (in other words, b can take on values of 10, 20, 30, etc.). The cost to operate the line itself is $120/hr. Ignore material and tooling costs. Based on cost per unit of product, determine the buffer capacity b that will minimize unit product cost.
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