Question: Problem 7 - 1 5 ( Algo ) The Goodparts Company produces a component that is subsequently used in the aerospace industry. The component consists
Problem Algo
The Goodparts Company produces a component that is subsequently used in the aerospace industry. The component consists of three parts A B and C that are purchased from outside and cost and cents per piece, respectively. Parts A and are assembled first on assembly line which produces components per hour. Part undergoes a drilling operation before being finally assembled with the output from assembly line There are, in total, six drilling machines, but at present only three of them are operational. Each drilling machine drills part at a rate of parts per hour. In the final assembly, the output from assembly line is assembled with the drilled part The final assembly line produces at a rate of components per hour. At present, components are produced eight hours a dayzand five days a week. Management believes that if the need arises, it can add a second shift of eight hours for the assembly lines.
The cost of assembly labor is cents per part for each assembly line; the cost of drilling labor is cents per part. For drilling, the cost of electricity is cent per part. The total overhead cost has been calculated as $ per week. The depreciation cost for equipment has been calculated as $ per week.
a Determine the process capacity number of components produced per week of the entire process.
Process capacity
units per week
b Suppose a second shift of eight hours is run for assembly line and the same is done for the final assembly line. In addition, four of the six drilling machines are made operational. The drilling machines, however, operate for just eight hours a day. What is the new process capacity number of components produced per week
units per week
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