Consider the following batch flow process consisting of three process steps performed by three stations A. B and C and it manufactures a high-end luxury item. Work is processed in batches at each step. The following table lists the required processing times and setup times at each of the three stations. Assume that there is unlimited space for buffer inventory between these steps Note: A setup can only begin once the batch has arrived at the station. During a setup, the station is unable to process any product. Station A Station B Station C Setup Time 20 minutes 5 minutes No setup needed Processing Time 4 minuteslunit 3 minutes/unit 6 minutes/unit The manufacturer works 24 hours per day (around the clock) in 3 shifts. Assume the demand for the high-end luxury item manufactured by this process equals 200 units/day. Do not circle a choice without explaining how you arrived at the answer as no credit will be given without showing calculations to justify your choices. 2 () Suppose the items are manufactured in batches of 5. Which station is the bottleneck for the process? What is the corresponding daily capacity of the process? Show calculations to justify your choice. 2 (ii) Suppose the firm is interested in producing as many units per day as possible. What is the lowest batch size that will allow them to achieve this? Show calculations without which credit will not be given. A. 2.5 B. 5 C. 10 D. 20 E. 100 2 (ii) What batch size would you recommend if you desire the maximum flow rate that leads to the lowest level of inventory? A. 2.5 B. 5 C. 6.25 D. 10 E. 20 2 iv)* They have a choice of investing $20,000 in the business. If they spend this on marketing, they will increase their demand by 50 units per day. If they spend it on technology to reduce set-up times, they can reduce the set-up time at Station A to 10 minutes. Finally, if they spend it on a new machine for Station C, they could reduce the cycle time at this station to 5 minutes/unit