A toy company currently operates for 40 hours per week and sells and average of 6,000 toys per week. The manufacturing process consist of three basic operations: molding, painting and finishing (performed in that order). Changing over between different versions of toys requires setup time at the painting and finishing. The table below lists the setup times for a batch and the processing times for each unit at each step. There is unlimited buffer space between these steps. Assume that (i) setups need to be completed first, (ii) a setup can only start once the batch has arrived at the resource, and (iii) all flow units of a batch need to be processed at the resource before any of the units of the batch can be moved to the next resource.

PROCESS STEP MOLDING PAINTING FINISHING

SETUP TIME No Setup 20 min 10 min

PROCESSING TIME 0.3 mins/unit 0.2 mins/unit 0.15 mins/unit

A)What is the process capacity in units per hour with a batch size of 600 toys?

b)What batch size would minimize inventory without decreasing the process capacity?

c) What batch size would minimize inventory without decreasing the current flow rate?