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1 0 . a ) Klassen Toy Company, Inc., assembles two parts ( parts 1 and 2 ) : Part 1 is first processed at

10. a) Klassen Toy Company, Inc., assembles two parts ( parts 1 and 2): Part 1 is first processed
at workstation A for 15 minutes per unit and then processed at workstation B for 10 minutes
per unit. Part 2 is simultaneously processed at work-station C for 20 minutes per unit. Work
stations B and C feed the parts to an assembler at workstation D, where the two parts are
assembled. The time at workstation D is 15 minutes. i) What is the bottleneck of this process?
ii) What is the hourly capacity of the process?
3
b) A work cell at Chris Ellis Commercial Laundry has a workstation with two machines, and
each unit produced at the station needs to be processed by both of the machines. (The same
unit cannot be worked on by both machines simultaneously.) Each machine has a production
capacity of 4 units per hour. What is the throughput time of the work cell?
c) What is the net present value of an investment that costs $ 75,000 and has a salvage value
of $ 45,000? The annual profit from the investment is $ 15,000 each year for 5 years. The cost
of capital at this risk level is 12%.

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