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The Seawall Corporation uses an injection molding machine to make a plastic product, Z 3 9 , after receiving firm orders from its customers. Seawall
The Seawall Corporation uses an injection molding machine to make a plastic product, Z after receiving firm orders from its customers. Seawall estimates that it will receive orders for Z during the coming year. Each order of Z will take hours of machine time. The annual machine capacity is comma hours.Calculatea the average amount of time that an order for Z will wait in line before it is processed andb the average manufacturing cycle time per order for Z
Seawall is considering introducing a new product, Y The company expects it will receive orders of Y in the coming year. Each order of Y will take hours of machine time. Assuming the demand for Z will not be affected by the introduction of Y calculatea the average waiting time for an order received andb the average manufacturing cycle time per order for each product, if Seawall introduces Y
Seawall is debating whether it should introduce Y The following table provides information on selling prices, variable costs, and inventory carrying costs for Z and Y:
Selling Price per Order if Average Manufacturing Cycle Time per Order Is
Product
Annual Average Number of Orders
Less Than Hours
More Than Hours
Variable Cost per Order
Inventory Carrying Cost per Order per Hour
Z
$
$
$
$
Y
Using the average manufacturing cycle times calculated in requirement should Seawall manufacture and sell Y
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