Question: Subject: operation management 3. Consider a workstation with 16 machines (in parallel), each with an average effective process time of 45 minutes with CVe2=2.5. Each

Subject: operation management

Subject: operation management 3. Consider a

Subject: operation management 3. Consider a

3. Consider a workstation with 16 machines (in parallel), each with an average effective process time of 45 minutes with CVe2=2.5. Each machine costs $10,000. Orders arrive at a rate of 20 per hour with CVa2=0.8 and must be filled. The maximum allowable average time-in-system is one hour. Currently it is a little more than 1.6 hours. Analyze the following options for decreasing response time and make a recommendation. a. Modify the existing machines (all 16) to make them faster. Assume the coefficient of variation for the shorter effective processing times does not change. The total cost will be $12,500 and the new effective processing time is 41 minutes. b. Add another machine to the workstation at a cost of $10,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!