Please show all work

1. Order Processing

In a mail-order company there are three steps to complete when a call comes in. First the order is received and typed into the system by employee 1. Then employer 2 checks the stock to see if the product is available. Finally, employee 3 arranges the shipment from that location. The processing times are

Receive Order: 5 minutes/order

Check Stock: 2 minutes/order

Arrange Shipment: 10 minutes/order

Receive Order

p = 5 min/unit

p = 2 min/unit

p = 10 min/unit

Check Stock

Arrange Shipment

1a. What is the flow unit?

1b. What is the capacity of the Receive Order station in orders per hour?

Hint: with one worker at a resource, the Resource Capacity = 1/p, and there are 60 minutes/hour.

Select one:

2

6

10

12

1/5

1c. Where is the bottleneck for this system?

Hint: find the resource with the lowest Resource Capacity.

Select one:

2/3

Receive Order

Check Stock

Arrange Shipment

Cannot be determined from the information given

1d. What is the flow rate if the demand rate is 15 units/hour? Assume there is no limit on the available input.

Flow rate = minimum{available input, demand rate, process capacity}

Select one:

2 units/hour

6 units/hour

12 units/hour

15 units/hour

1e. What is the resource utilization of Receive Order if the demand rate is 15 units per hour?

Resource Utilization = Flow Rate/Resource Capacity

Select one:

100%

80%

50%

20%

1f. What is the resource utilization of Check Stock, if the demand rate decreases to 5 units per hour?

Hint: what is the flow rate now?

100%

83.3%

41.7%

16.7%

1g. Given that the demand is 5 units per hour, what kind of process is this: input-constrained, demand-constrained or capacity-constrained?

1h. How could you improve the situation, given that demand stays at 5 units per hour?

a) Have a marketing promotion to increase the demand

b) Decrease the capacity at Arrange Shipment to 5 units/hour

c) Put a second operator in parallel for Arrange Shipment.

d) Increase the capacity of Receive Order to 30 units/hour

3/3

2. Machine Shop

Consider a production process consisting of three resources:

Resource	Processing Time [Min/Unit]	Number of Workers
1 (Lathe)	10	2
2 (Drill)	6	1
3 (Weld)	16	3

Assume there is sufficient input to the process.

2a. What is the capacity of each Resource in units/hour?

Hint: you need to take into account the number of workers at each resource. Resource capacity = m/p.

Resource 1: capacity = 2/10 units/min = 0.2 units/min x 60 min/hour = 12 units/hour

2b. Which resource is the bottleneck?

2c. What is the flow rate if the demand is 15 units per hour? There is sufficient input for the process.

Flow rate = minimum{available input, demand rate, process capacity}

2d. What is the utilization of each resource if demand is 15 units per hour?

Resource Utilization = Flow Rate/Resource Capacity

2e. Given that the demand is 15 units per hour, what kind of process is this: input-constrained, demand-constrained or capacity-constrained?

3. In a capacity-constrained process, why are we interested in locating the bottleneck?