Question: Consider a workstation with 1 1 machines ( in parallel ) , each requiring one hour of process time per job with c 2 =

Consider a workstation with 11 machines (in parallel), each requiring one hour of process time per job with c2=5. Each machine costs $10,000. Orders for jobs arrive at a rate of 10
e
per hour with c2=1 and must be filled. Management has specified a maximum allowable a
average response time (i.e., time a job spends at the station) of 2 hours. Currently it is just over 3 hours (check it).
Analyze the following options for reducing average response time.
(a) Perform more preventive maintenance so that mr and m f are reduced, but mr /m f
remains the same. This costs $8,000 and does not improve the average process time
but does reduce ce2 to one.
(b) Addanothermachinetotheworkstationatacostof$10,000.Thenewmachineis
identical to existing machines, so t =1 and c2=5. ee
(c) ModifytheexistingmachinestomakethemfasterwithoutchangingtheSCV,atacost of $8,500. The modified machines would have t =0.96 and c2=5.
What is the best option?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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!