Question: A company uses a two-step process to make a part. The first step involves a drill press that requires a 60-minute setup time before the

A company uses a two-step process to make a part. The first step involves a drill press that requires a 60-minute setup time before the production of each batch can begin. After that, one unit can be drilled every 6 minutes. The second step involves attaching the drilled item to another device which takes 8 minutes per unit. Demand is 5 units per hour. What is the ideal batch size of the parts?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To determine the ideal batch size we can use the Economic Order Quantity EOQ formula ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!