Consider a process consisting of three resources; each resource is staffed by two workers. - Resource #1 has a processing time of 10 minutes per unit. - Resource #2 has a processing time of 8 minutes per unit. - Resource #3 has a processing time of 4 minutes per unit. Assume each worker gets paid $15 per hour. Each unit is sold for $6 and includes parts that are sourced for $1 which is the variable cost. The company has fixed costs of $10 per hour. Demand rate is assumed as 13 units per hour.

a. What is the idea cycle time to meet the demand?

Which option is the best in terms of the profit per hour? (Calculate the profit of each option to choose the best one.) - Option #1: 10% lower material costs - Option #2: 10% lower fixed costs - Option #3: 10% faster at bottleneck