Formulas provided by professor:

EOQ=2DSHEOQ=2DSH

TC=SDQ+HQ2TC=SDQ+HQ2

PurchasingCost=PD

SigmaLTD=SQRT(L)*SigmaR

SigmaLTD=R*SigmaL

SL*=Cu/(Cu+Co)

RT=I

Rp=c/Tp

Cycle Time = CT=1/Rp

Takt Time = TT= 1/R

Cycle Inventory = Q/2

Average Inventory in the Presence of Safety Stock = Cycle Inventory +Isafety

Question 8:

There are three sequential operations (Station 1, Satiation 2, and Station 3). Incoming applications go to station 1 first, then to Station 2, finally to station 3, and then leave the process. There are 4 resources in Station 1, 3 resources in Station 2, and 2 resources in Station 3. The utilization of these stations are 87%, 86%, and 82%, respectively. In order to increase throughput, we need to:

Potential Answer:

Increase the capacity of station 1.

Increase the capacity of station 2.

Increase the Capacity of Station 3.

Increase the capacity of all stations.

None of the answers.