OVERLOAD CO makes a gear module which includes two components: Component Lambda and Component Kappa.

These components are produced in a Production resource and then assembled together in Assembly. At the Production resource, a typical production cycle includes 500 units of Component Lambda and 100 units of Component Kappa and involves two setups to switch between the two types of components. Each setup at the Production resource takes 40 minutes.

Suppose that Production of these components has 1 worker. Each Component Lambda takes 60 seconds to make and each Component Kappa also takes 60 seconds to make.

Assembly has 3 workers who are able to assemble a gear module in 22 minutes.

You are further told that:

Number of units of Component Lambda needed to make each gear module = 5

Number of units of Component Kappa needed to make each gear module = 1

(a) Assume that there is sufficient demand and the process is capacity-constrained. If REMEDIAL CO designs a cyclic schedule for the Production resource, what batch size (in component sets) should it operate so as to minimize inventory while not constraining the flow through assembly?

(b) What is the utilization of the Production Resource if the process is capacity constrained?

(c) What is the utilization of the Production Resource if the process is demand constrained?