Question: Using utilization to determine the bottleneck is not necessary, because the denominator in the utilization ratio is the same for every work station, with one

Using utilization to determine the bottleneck is not necessary, because the denominator in
the utilization ratio is the same for every work station, with one worker per machine at
each step in the process. So we identify the bottleneck by computing aggregate work
loads at each work station. The firm wants to satisfy as much of the product demand in a
week as it can. Each week consists of 2400 minutes of available production time.
Multiplying the processing time at each station for a given product with the number of
units demanded per week yields the capacity load. These loads are summed across all
products going through that workstation and then compared with the existing capacity of
2400 minutes.

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!