Question

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 50 orders for Z39 during the coming year. Each order of Z39 will take 80 hours of machine time. The annual machine capacity is 5,000 hours.

Required
1. Calculate
(a) The average amount of time that an order for Z39 will wait in line before it is processed
(b) The average manufacturing cycle time per order for Z39.
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 20 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
(b) The average manufacturing cycle time per order for each product, if Seawall introduces Y28.



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  • CreatedMay 14, 2014
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