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Consider a process consisting of three resources; each resource is staffed by two workers. - Resource #1 has a processing time of 10 minutes per unit. - Resource #2 has a processing time of 8 minutes per unit. - Resource #3 has a processing time of 4 minutes per unit. Assume each worker gets paid $15 per hour. Each unit is sold for $6 and includes parts that are sourced for $1 which is the variable cost. The company has fixed costs of $10 per hour. Demand rate is assumed as 13 units per hour. a. What is the idea cycle time to meet the demand? (25/100) b. Which option is the best in terms of the profit per hour? (Calculate the profit of each option to choose the best one.) - Option #1: 10\% lower material costs (25/100) - Option #2: 10\% lower fixed costs (25/100) - Option #3: 10% faster at bottleneck (25/100) Consider a process consisting of three resources; each resource is staffed by two workers. - Resource #1 has a processing time of 10 minutes per unit. - Resource #2 has a processing time of 8 minutes per unit. - Resource #3 has a processing time of 4 minutes per unit. Assume each worker gets paid $15 per hour. Each unit is sold for $6 and includes parts that are sourced for $1 which is the variable cost. The company has fixed costs of $10 per hour. Demand rate is assumed as 13 units per hour. a. What is the idea cycle time to meet the demand? (25/100) b. Which option is the best in terms of the profit per hour? (Calculate the profit of each option to choose the best one.) - Option #1: 10\% lower material costs (25/100) - Option #2: 10\% lower fixed costs (25/100) - Option #3: 10% faster at bottleneck (25/100)