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Throughput Loss and Profitability A new technology of hand-making glass products became available, but it requires that special components are added to the glass and
Throughput Loss and Profitability A new technology of hand-making glass products became available, but it requires that special components are added to the glass and that the hot glass products are cooled in special tanks immediately after hand-shaping by a skilled worker. One skilled worker shapes the glass products manually. Since a large variety of glass products is made, the time to make a unit is assumed to have exponential distribution with an average of 1 minute per unit. The worker works 8 hours a day, 20 days a month. As soon as the shaping of a unit is finished, it has to be put in one of the cooling tanks. The cooling time is random with a mean of 0.5 minute and a standard deviation of 0.2 minute. After cooling of a unit is completed, an assistant moves the unit to a storage area. If no tank is available when a unit needs to be cooled, the unit is cooled without a tank (no waiting is allowed), but it is then considered a lower quality and sold for only 20% of the normal price. The normal price is $5 per unit on average. Process is capacity constrained (demand and
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