A product must go through two steps in sequence to complete production. The setup times, and processing times per unit, are given in the table. Assume there are no issues with startup or shutdown of the factory, so you can use long run averages.

1. If the factory uses batch sizes of 5 units, what would be the capacity of each station (or step), measured in batches per hour?

2. What would be the capacity of each station, measured in units per hour?

3. Which station is the bottleneck? 4. What is the capacity of the facility in units per hour?

5. If the factory uses batch sizes of 20 units, which station is the bottleneck?

Step 1

Setup time (min): 30

Processing time per unit (min) : 12

Step 2

Setup time (min): 0

Processing time per unit (min) : 15

*Make sure to show excel formulas used.