P2. Process with Setup Times Consider the following batch-flow process consisting of three process steps performed by three machines: Machine 1 executes Step 1, Machine 2 executes Step 2, and Machine 3 executes Step 3. Step 1 Step 2 Step 3 Activity Time: 2 min/part Activity Time: 4 min/part Activity Time: 3 min/part Setup Time: 40 min No Setup No Setup The goal of the problem is to advice the process on what batch size to choose. Before a batch is processed at Step 1, Machine 1 has to be set up for 40 minutes. During setup, the machine is unable to process any product. The demand of the process is 12 units per hour. (a) Assume that the batch size is 100 units. What is the bottleneck of this process? What is the capacity of the process? (Hint: To get the answer to this, compute the capacity of each of the three resources (machines) in isolation, and then compare them.] (b) What is the process flow rate (rate at which the process delivers units given the current demand)? The process utilization? Is the process capacity-constrained or demand- constrained? (c) What batch size would you choose in order to minimize pipeline inventory without reducing the process capacity? What batch size would you choose in order to minimize pipeline inventory without reducing the process flow rate