The

Seawall

Corporation uses an injection molding machine to make a plastic product,

Z39,

after receiving firm orders from its customers.

Seawall

estimates that it will receive

20

orders for

Z39

during the coming year. Each order of

Z39

will take

80

hours of machine time. The annual machine capacity is

2,000

hours.

Read the

requirements

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.

Question content area bottom

Part 1

Requirement 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.

(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

Part 2

Now enter the amounts into the formula. (Enter the amounts in the same order as shown in the formula.)

		(		)	=		hours of wait time
2 (		- (				))

Part 3

(b) Calculate the average manufacturing cycle time per order for

Z39.

Select the formula and calculate the average manufacturing cycle time per order for

Z39.

				Average manufacturing
	+		=	cycle time for Z39
	+		=

Part 4

Requirement 2.

Seawall

is considering introducing a new product,

Y28.

The company expects it will receive

25

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

Seawall

introduces

Y28.

(Abbreviations used: Capacity = Annual machine capacity, Orders

Z39

= Annual average number of orders of

Z39,

Orders

Y28

= Annual average number of orders of

Y28,

Mfg time

Z39

= Manufacturing time per order of

Z39,

Mfg time

Y28

= Manufacturing time per order of

Y28,

SP

Z39

= Selling price per order of

Z39,

SP

Y28

= Selling price per order of

Y28,

VC

Z39

= Variable cost per order of

Z39,

VC

Y28

= Variable cost per order of

Y28.)

(a) Calculate the average waiting time for an order received. Begin by selecting the formula to calculate the average waiting time for an order received.

StartFraction left bracket left parenthesis Orders Upper Z 39 right parenthesis times left parenthesis Mfg time Upper Z 39 right parenthesis squared right bracket plus left bracket left parenthesis Orders Upper Y 28 right parenthesis times left parenthesis Mfg timeY 28 right parenthesis squared right bracket Over 2 times left bracket Capacity minus left parenthesis Orders of Upper Z 39 times Mfg time Upper Z 39 right parenthesis minus left parenthesis Orders Upper Y 28 times Mfg time Upper Y 28 right parenthesis right bracket EndFraction nbsp(Orders Z39) (Mfg time Z39)2+(Orders Y28) (Mfg timeY28)22 [Capacity (Orders of Z39 Mfg time Z39)(Orders Y28 Mfg time Y28)]

StartFraction left bracket left parenthesis Capacity right parenthesis times left parenthesis Orders Upper Z 39 right parenthesis squared right bracket plus left bracket left parenthesis Capacity right parenthesis times left parenthesis Orders Upper Y 28 right parenthesis squared right bracket Over 2 times left bracket Capacity minus left parenthesis Orders of Upper Z 39 times Mfg time Upper Z 39 right parenthesis minus left parenthesis Orders Upper Y 28 times Mfg time Upper Y 28 right parenthesis right bracket EndFraction nbsp(Capacity) (Orders Z39)2+(Capacity) (Orders Y28)22 [Capacity (Orders of Z39 Mfg time Z39)(Orders Y28 Mfg time Y28)]

StartFraction left bracket left parenthesis Mfg time Upper Z 39 right parenthesis times left parenthesis Orders Upper Z 39 right parenthesis squared right bracket plus left bracket left parenthesis Mfg time Upper Y 28 right parenthesis times left parenthesis Orders Upper Y 28 right parenthesis squared right bracket Over 2 times left bracket Capacity minus left parenthesis SP Upper Z 39 times VC Upper Z 39 right parenthesis minus left parenthesis SP Upper Y 28 times VC Upper Y 28 right parenthesis right bracket EndFraction nbsp(Mfg time Z39) (Orders Z39)2+(Mfg time Y28) (Orders Y28)22 [Capacity (SP Z39 VC Z39)(SP Y28 VC Y28)]

StartFraction left bracket left parenthesis Mfg time Upper Z 39 right parenthesis times left parenthesis Orders Upper Z 39 right parenthesis squared right bracket plus left bracket left parenthesis Mfg time Upper Y 28 right parenthesis times left parenthesis Orders Upper Y 28 right parenthesis squared right bracket Over 2 times left bracket Capacity minus left parenthesis Orders of Upper Z 39 times Mfg time Upper Z 39 right parenthesis minus left parenthesis Orders Upper Y 28 times Mfg time Upper Y 28 right parenthesis right bracket EndFraction nbsp(Mfg time Z39) (Orders Z39)2+(Mfg time Y28) (Orders Y28)22 [Capacity (Orders of Z39 Mfg time Z39)(Orders Y28 Mfg time Y28)]

= Average wait time

Part 5

Enter the amounts into the formula now. (Enter the amounts in the same order as shown in the formula.)

[

] + [

]

=

hours of wait time

2 [

- (

) - (

) ]

Part 6

(b) Calculate the average manufacturing cycle time per order for each product if

Seawall

introduces

Y28.

The average manufacturing cycle time per order for Z39 if Seawall introduces Y28 is

hours.

Part 7

The average manufacturing cycle time per order for Y28 is

hours.