Question: Question #4 Consider the same batch flow process as above but now Step 3 also has a setup time. Step 1 Step 2 Step 3

Question #4

Consider the same batch flow process as above but now Step 3 also has a setup time.

Step 1 Step 2 Step 3
Processing time 2 mins/unit 3 mins/unit 1.5 mins/unit
Setup Time 20 mins No setup 40 mins

What is the ideal batch size (i.e. one that minimizes inventory without affecting process capacity)?

DEMAD RATE= d/timeperiod =60/1= 60 unites per hour

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