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Consider a flow shop in which jobs are processed in sequence on Machines A, B, and then C. Jobs are produced at a roughly constant
Consider a flow shop in which jobs are processed in sequence on Machines A, B, and then C. Jobs are produced at a roughly constant rate of 20 per hour in accordance to the forecast. The data for all the machines is provided below. The overhead costs are $750,000 per annum; the flow shop operates for 355 days per year and 16 hrs per day. 20% of jobs on machine A turn out to be defective and are scrapped; it has been estimated that scrapping and other labor activities increase the overall labor cost per piece by 40 cents. The remaining 80% go on to Machine B and then to Machine C. Defective rates of Machines B and C are negligible. The material cost is $5/ piece. - Compute the average cost per unit time of operating this system. - Identify the bottleneck machine. Provide an explanation. - Determine the average lead time of the job along with its confidence interval - Determine the average WIP in the system. Consider a flow shop in which jobs are processed in sequence on Machines A, B, and then C. Jobs are produced at a roughly constant rate of 20 per hour in accordance to the forecast. The data for all the machines is provided below. The overhead costs are $750,000 per annum; the flow shop operates for 355 days per year and 16 hrs per day. 20% of jobs on machine A turn out to be defective and are scrapped; it has been estimated that scrapping and other labor activities increase the overall labor cost per piece by 40 cents. The remaining 80% go on to Machine B and then to Machine C. Defective rates of Machines B and C are negligible. The material cost is $5/ piece. - Compute the average cost per unit time of operating this system. - Identify the bottleneck machine. Provide an explanation. - Determine the average lead time of the job along with its confidence interval - Determine the average WIP in the system
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