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 14:

We produce two products of A and B. The volume of production of both products is equal. Suppose each time when we decide to switch from one product to the other, we need to spend 15 minutes to setup the machine for the new product. Suppose it takes 3 minutes to produce one unit of product A, and 1 minute to produce one unit of product B. Suppose we need 6 units of each product per hour. To have maximum flexibility we prefer to produce in small batch sizes. A day is 8 hours. Compute the smallest possible batch size to meet the demand.

Group of answer choices

6 units of each product per batch.

7 units of each product per batch.

8 units of each product per batch.

9 units of each product per batch.

5 units of each product per batch.