Lecture Exercise #4 Station 1 Machine A 20 min Station 2 12 minutes Station 3 8 minutes Station 1 Machine B 20 min . . What is the bottleneck Station? What is the bottleneck time? What is the throughput time? If operate 8 hrs a day, 6 days a week, what is the weekly capacity? Lecture Exercise #5 Andre is investigating setting up a crepe stand on campus. He has two options: 1. He could rent space in the student union (which costs $300/month in rent and overhead) His materials and labor costs are $1 per crepe, and the sale price is $4 per crepe. 2. He could use a portable crepe maker from a friend and set up a booth outside the union. He'd have no rent or other general overhead costs (i.e., no fixed costs), but his friend would demand $1.50 per crepe sold (in addition to materials and labor). Questions: (a) What is the break-even point for each of the two options? (b) An informal survey shows that Andre could expect to seli 350 crepes/month. Which option should he select? D Choose