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Handley Plastics Inc. (HPI) produces plastic cups, along with other plastic products, for a variety of customers. While each order may require a different stenciled
Handley Plastics Inc. (HPI) produces plastic cups, along with other plastic products, for a variety of customers. While each order may require a different stenciled design on the exterior of the cup, all cup orders are essentially processed in the same manner. HPI also offers cups in one of 5 colors to their customers. The different colors all represent roughly the same percentage of demand, which is estimated at a total of 20,000 cups per week. The typical order size is 1000 cups. The cup producing operation works 5 days a week, 7.5 hours a day. As previously indicated, all cups follow the same process. The plastic resin required as raw material is delivered once a week by an external supplier, UB Resin. In order to accommodate the different colors, the first operation, Molding, requires a setup between batches. The current setup time and batch size are 12 minutes and 1000 cups, respectively. The Molding operation needs one full time employee to operate the individual injection molding press. The process time is 4.5 seconds per cup. The Molding operation is followed by Stenciling, where the unique designs are applied to the exterior of the cups. The Stenciling department employs 4
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