4. Consider a process with 4 processing stations as shown below A B C D 12 min 10 min 16 min 8 min Currently each of the machines (one worker per machine) work completely during the & hour shift. The piling up of inventory between various stations had prompted the company to hire you as a consultant to solve the problem. After a simple process analysis, using principles of Synchronous manufacturing, you have suggested the following Reduce capacity utilisation of A, B and D to 75%, 62.5% and 50% levels. The workers adopted the suggestion in the following way A) Worker of Machine A started the machine late so that he can work continuously B) Worker of Machine B decided to do clean up the machine for 20-25 minutes after every hour of working () Worker D had offered the management to take up an extra work during the last four hours of the shift What will be the effect of these decisions on the factory performance? How many of these decisions are feasible to implement. How will you solve the problem 10 Marks 5 a) Sud's Bottling Company does bottling, labeling and distribution work for several local microbreweries. The demand rate for Wortman's beer is 600 cases (24 bottles each) per week and set up cost is $800. The value of inventory is $12.50 per case and annual holding cost is 30%% of inventory value? What is the optimum number of production runs per year? (5 Marks) b) The University book store at a prestigious university buys mechanical pencils from a wholesaler. The wholesale offers discounts for large orders as per the following price schedule: Order Quantity Price per unit 0 to 200 $4.00 201 to 2000 $3.50 2001 or more $3.25 The book store expects an annual demand of 3500 units. It costs upto $10 to place an order, and the annual cost of holding a unit in stock is 20% of the unit price. Determine the best order quantity