Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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A novelty coffee mug manufacturer produces 5 different designs that
are sold at tourist information kiosks. The demand requirements for the com-
3.
ing tourist season is as follows:
Design
Demand (units) 500 750 600 800 450
A
B
C
DE
The mugs can all be produced in the same workstations, but require different
processing and setup times. The production information is in the following
table:
Design
Batch Size (units)
C
D
50
50
50
50
50
Setup Time (hr/batch)
Processing Time (hr/unit) 0.15 0.15 0.25 0.25 0.10
2.5
4
1.5
The company wants to produce all the required mugs in one four-week pe-
riod. It currently operates workstations that work 8 hours per day, 5 days per
week, with a capacity cushion of 20%.
(a) Calculate the total time required to produce the mugs to meet the ex-
pected demand.
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Transcribed Image Text:A novelty coffee mug manufacturer produces 5 different designs that are sold at tourist information kiosks. The demand requirements for the com- 3. ing tourist season is as follows: Design Demand (units) 500 750 600 800 450 A B C DE The mugs can all be produced in the same workstations, but require different processing and setup times. The production information is in the following table: Design Batch Size (units) C D 50 50 50 50 50 Setup Time (hr/batch) Processing Time (hr/unit) 0.15 0.15 0.25 0.25 0.10 2.5 4 1.5 The company wants to produce all the required mugs in one four-week pe- riod. It currently operates workstations that work 8 hours per day, 5 days per week, with a capacity cushion of 20%. (a) Calculate the total time required to produce the mugs to meet the ex- pected demand.
(b) Calculate the time available (taking into account the capacity cushion)
for 1 workstation.
(c) How many workstations are needed to meet the production requirements?
(d) The company only has 4 workstations available. If it only operates its 4
stations, how many weeks does it need to meet the production require-
ments?
(e) The company has other contracts it needs to satisfy. Working on the
mugs more than 4 weeks means it will have to cancel another contract,
incurring a penalty of $4,500. Each new workstation costs the company
$2,500. What should the company do: cancel the contract oF buy the
required workstations?
expand button
Transcribed Image Text:(b) Calculate the time available (taking into account the capacity cushion) for 1 workstation. (c) How many workstations are needed to meet the production requirements? (d) The company only has 4 workstations available. If it only operates its 4 stations, how many weeks does it need to meet the production require- ments? (e) The company has other contracts it needs to satisfy. Working on the mugs more than 4 weeks means it will have to cancel another contract, incurring a penalty of $4,500. Each new workstation costs the company $2,500. What should the company do: cancel the contract oF buy the required workstations?
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