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The Sandstone Corporation uses an injection molding machine to make a plastic product, Z39, after receiving firm orders from its customers. Sandstone estimates that it
The Sandstone Corporation uses an injection molding machine to make a plastic product, Z39, after receiving firm orders from its customers. Sandstone estimates that it will receive 10 orders for Z39 during the coming year. Each order of Z39 will take 90 hours of machine time. The annual machine capacity is 1,000 hours. Read the requirements. Requirement 1. Calculate (a) the average amount of time that an order for Z3 will wait in line before it is processed and (b) the average manufacturing cycle time per order for Z39. (Abbreviations used: Capacity = Annual machine capacity, Orders Z39 = Annual average number of orders of Z39, Mfg time Z39 = Manufacturing time per order of Z39, SP Z39 = Selling price per order of Z39, VC Z39 = Variable cost per order of Z39.) (a) Calculate the average amount of time that an order for Z39 will wait in line before it is processed. Begin by selecting the formula to calculate the wait time for Z39. = Wait time 1. Calculate (a) the average amount of time that an order for Z39 will wait in line before it is processed and (b) the average manufacturing cycle time per order for Z39. 2. Sandstone is considering introducing a new product, Y28. The company expects it will receive 5 orders of Y28 in the coming year. Each order of Y28 will take 10 hours of machine time. Assuming the demand for Z39 will not be affected by the introduction of Y28, calculate (a) the average waiting time for an order received and (b) the average manufacturing cycle time per order for each product if Sandstone introduces Y28
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