Question: 1. Consider the following situation: Batch size is 100, there is a 5-minute processing time per part, and a 120-minute setup time each time a

1. Consider the following situation: Batch size is 100, there is a 5-minute processing time per part, and a 120-minute setup time each time a new batch is started. In this situation, what is the amount of direct labor (in minutes) spent per part?

2. Now, if we decrease batch size by 50%, but keep everything else the same, what is the new direct labor spent per part? It is higher, right?

Do your calculations in (1) and (2) mean that the idea of reducing batch sizes at non-bottlenecks is flawed since it results in higher labor effort per part (and as such, in a higher cost per part, because direct labor is part of the cost per part)? Is there a way these calculations can be reconciled with the idea of reducing batch sizes at non-bottlenecks?

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