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CA= Maximum Capacity of Machine A (units / hour) =2; Consider the following two-machine manufacturing facility BA= Maximum Batch Size machine A can handle: (units)
CA= Maximum Capacity of Machine A (units / hour) =2; Consider the following two-machine manufacturing facility BA= Maximum Batch Size machine A can handle: (units) =4; CB= Maximum Capacity of Machine B (units /hour) =1; BB= Maximum Batch Size machine B can handle: (units) =2 Machine A produces an intermediate product XA that can be sold directly to the market at a price $4 per unit. However, a unit can receive additional processing on machine B to get a higher quality product XB that is sold at $6 dollars per units. When machine A produces its units it can produce up to 4 units simultaneously (its maximum batch size) in a fixed amount of time and when machine B processes its units, it can process up to 2 units simultaneously (its maximum batch size) in a fixed amount of time. (From the data concerning the maximum capacity and the maximum batch size, you can compute how much time it would take to produce a batch in each one of the two machines. Of course, the maximum capacity can only be achieved with full batch sizes.) a) (10 Points) If the company decide to produce product XA exclusively (shut down machine B). - What is the capacity of the system, and what is the throughput time (flow time) for units of product XA ? - How much total revenue will there be after 1000 hours of production
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