Question: I've got this homework problem partially completed. You can see the answers I've given (those are correct), and there are blanks for the few that
I've got this homework problem partially completed. You can see the answers I've given (those are correct), and there are blanks for the few that I have unanswered and remaining. Please help with those as I've come up with incorrect solutions thus far.
Waterdog Threads (WT) manufactures eco-friendly swimwear. Their process consists of three key stations: (1) receiving materials; (2) fabrication; and (3) packing and shipping. Processing information for each station is provided in the following table.
| Station | 1) Receiving | 2) Fabrication | 3) Shipping |
| Processing Time (min) per unit | 4 | 28 | 7 |
| # Workers | 3 | 19 | 2 |
Other important process parameters are provided as follows:
- The production process operates for 9 hours per day.
- Fixed operating costs not including wages are $443 per day.
- All workers are paid $20 per hour.
- Customer demand for finished apparel is 141 units per day.
- The net revenue (less variable cost of materials) per unit is $38.
Rounding instructions.
- Carry all calculations to three decimal places
- Enter your final answers in units and dollars rounded to 1 decimal place
- Enter utilization as a percentage rounded to the nearest tenth of a percent, e.g. 0.7138 should be entered as 71.4%.
- When identifying bottlenecks or deciding where to assign new workers, award any ties to the station earlier in process (e.g. 1 before 2 before 3).
a. Identify the bottleneck station and calculate the process capacity in units/day. (20%)
- Bottleneck Station (enter 1, 2, or 3): 3
- Process Capacity: 154.3
b. Calculate the flow rate in units/day, the cycle time in minutes/day and the time it takes an empty system to produce 60 units. (20%)
- Flow rate: 141
- Cycle time: ___
- If the system starts empty, how long will it take to make 60 units? ___
c. Calculate the utilization at each station and the average labor utilization of the process overall. (20%)
- Utilization at Station 1: 34.8 %.
- Utilization at Station 2: 38.5 %.
- Utilization at Station 3: 91.4 %.
- Calculate the average labor utilization of the production process overall: ___
d. Calculate the cost of direct labor. (10%)
Cost of direct labor: $ 30.64
e. Calculate the average profit per day. (10%)
Average profit per day: $ 594.76
f. Suppose that WT forecasts the demand to grow to 265 units/day by next quarter. WT would like to hire two additional workers to achieve the additional output required. To which station(s) should the new workers be assigned? Hint: make sure to update the station capacities and check for new bottlenecks after hiring each worker. (10%)
- To which station should the first worker be assigned? (enter 1, 2, or 3): 3
- To which station should the second worker be assigned? (enter 1, 2, or 3): 3 g. Compute the new average profit (with 2 new workers and higher demand). (10%)
Average profit per day: $ ____
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