Explanation and answers are required in step by step manner in Excel.

Question 1

How many machines are needed?

Consider two product varieties (A and B) made in the plant each is projected to have demands 8000 and 10000 units respectively and made in lot of size 100 and 120 units respectively. Production process takes 8 mins processing time/unit for product A and 10 mins for product B in the same machine, 1 hour set up time for product A and 1.5 hours for product B and the machine works 8-hour per day throughout the year only in week days. The plant manager has planned a 12% cushion.

Question 2

Workstation A and B makes 15 parts per day and 10 parts per day respectively. What should be the economic lot size for A if it takes 1 hour for setup and the semifinished part has to be kept under certain conditions (Annually Rs. 4 per piece) before it goes to B? The operator of a workstation takes Rs. 200 per hour. The annual demand for the finished part is 20000.