BUSI 411 Operations Management Ch 5

11t122014

5.

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Deternine the capacity of this process.

Capacity lhr

Worksheet

Problem 5-14

Diffculty:1 Easy

Leaming Objedive:0$O3 Describe ways of def ning and measuring capacity.

Learning Objective: 05-04 Name several determinants of effective ca pacity.

Assignment Print Viet,v

Problem 5-14 The following diagram shows a 4-step process that begins with Operation 1 and ends with Operation 4. The rates shown in each box represent the effective capacity of that operation.

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3.60 points

Problem 5-11 A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows:

Machine A B c

Product forecasts and processing times on the machines are as follows:

PROCCESSING TIME PER UNIT (minutes)

Annual Product Demand

1 24,000 2 8,000 3 30,000 4 18,000

a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day,240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine

Cost $ 80,000 $ 70,000 $40,000

A 1

1

6 6

B 4 3 4 5

C 6 5 3 1

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