1. JCL Inc. is a major chip manufacturing firm that sells its products to computer manufacturers like Dell, HP, and others. In simplified terms, chip-making at JCL Inc. involves three basic operations: depositing, patterning, and etching.

• Depositing: Using chemical vapor deposition (CVD) technology, an insulating material is deposited on the wafer surface, forming a thin layer of solid material on the chip.
• Patterning: Photolithography projects a microscopic circuit pattern on the wafer surface, which has a light-sensitive chemical like the emulsion on photographic film. It is repeated many times as each layer of the chip is built.
• Etching: Etching removes selected material from the chip surface to create the device structures.

The following table lists the required processing times and setup times at each of the steps. There is unlimited space for buffer inventory between these steps. Assume that the unit of production is a wafer, from which individual chips are cut at a later stage. Note: A Setup can only begin once the batch has arrived at the machine.

Process Step	1 Depositing	2 Patterning	3 Etching
Setup time	0 min.	30 min.	0 min.
Processing time	0.45 min./unit	0.25 min./unit	0.30 min./unit

A. What is the bottleneck step and process capacity (in units per hour) with a batch size of 100 wafers? (2')

B. What is the bottleneck step and process capacity (in units per hour) with a batch size of 200 wafers? Would you choose a batch size of 200 wafers (assuming any batch size can be chosen)? Why or why not? (3')