Consider the following process model

The data associated with this model are:

Activity	Cycle Time	Processing Time	Cost
Check stock availability	15 minutes	10 minutes	$5
Confirm order	30 minutes	3 minutes	$0
Reject order	60 minutes	4 minutes	$0
Ship goods	3 hours	30 minutes	$10
Emit invoice	1 hour	15 minutes	$0
Archive order	1 hour	10 minutes	$0

Assume that items are in stock 75% of the time. There is one ERP system, 3 warehouse staff, and 2 sales staff. All work eight hour days, five days a week (assume ERP system only operational during work hours). The cost to run the ERP system is $10/hour. The wages for warehouse staff are $25/hour, and the wages for sales staff are $30/hour.

1. Calculate the cycle time for this process

2. Calculate the cycle time efficiency for this process

3. Calculate the expected cost of the process

4. Calculate the pooled unit load for each resource

5. Calculate the theoretical capacity for each resource

6. Identify the bottleneck resource

7. How many orders can this process handle in one work week?

8. Assume that in a given day 30 orders arrive. What is the utilization rate for each resource?

Warehouse & Distribution - ERP System Check stock availability Purchase order received ERP System Warehouse & Distribution Seller Warehouse Staff Warehouse & Distribution - Warehouse Stoff Ship goods Sales Confirm order items in stock + Emit invoice X Archive order Order fulfilled Sales items not in stock Reject order Order rejected