Question: Consider a process consisting of three resources. All three resources are staffed by one worker. Assume the demand rate is 10 units per hour. Resource
Consider a process consisting of three resources. All three resources are staffed by one worker. Assume the demand rate is 10 units per hour.
- Resource 1 has a processing time of 17 minutes per unit.
- Resource 2 has a processing time of 15 minutes per unit.
- Resource 3 has a processing time of 12 minutes per unit.
1. What is the staffing level to meet the demand?
2. Assume the workers are paid $12 per hour. Each unit is sold for $20 and includes parts that are sourced for $1. The company has utility cost of $10 per hour. What would be the profits per hour if they were able to reduce the processing time at the bottleneck by 30%?
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