Answered: Metal frames for kick scooters are…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Metal frames for kick scooters are manufactured in two stages: Stamping and assembly.

Each frame is made up of two pieces: one part A and one part B. Currently, the stamping machine rotates its production between 120 part A’s and 120 part B’s.

In the stamping machine, setup times and production rates for each part are follows:

	Part A	Part B
Setup time (mins)	70	110
Production rate (parts per hour)	80	80

Completed parts move to assembly stage only when the entire batch is produced.

At assembly, parts are assembled manually to form the finished products. The two parts and a number of small purchased components are required for each unit of final product. Each product requires 30 minutes of labor time to assemble. There are 15 workers in assembly. There is sufficient demand to sell every scooter the system can make.

At the current batch size, what is the capacity of stage 1 (stamping) in [units per hour]?
At the current batch size, which stage is the bottleneck of the system?
Keeping everything else constant, what is the smallest batch size such that the process capacity is as large as possible?

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