Question: Function Receiving Putaway Picking Material Handling Shipping Capacity / worker 6 5 orders / day 4 5 orders / day 2 2 orders / day

Function
Receiving Putaway Picking Material Handling Shipping
Capacity/worker
65 orders/day 45 orders/day 22 orders/day 1,500 orders/day 50 orders/day
Number of workers
23513
Determine the total capacity of each function. What is the capacity of the entire system (i.e. of the DC), in orders/day?
Which function is the bottleneck?
What capacity should the functions that are upstream of the bottleneck run at? Why?
From your answer in Q3, what will be the utilization of each function?
How does the introduction of variability affect your answer to Question 3?
How can the capacity of the DC be increased? What will determine the new capacity after the change?

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