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Process Analysis Batching

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Question 1: Ankit Sharma decided to set up a small production facility in Mumbai to sell to

local restaurants that want to offer ice-cream made from hormone-free milk on their menu. To
start simple, he would offer only three flavours of ice-cream: vanilla, strawberry, and chocolate.
After a short time he found his demand and setup times to be:

Vanilla Strawberry Chocolate

Demand (kg/hour) 10 15 5

Setup time (hours) 0.75 0.5 0.1667

Ankit first produces a batch of vanilla, then a batch of strawberry, then a batch of chocolate and
then he repeats that sequence. For example, after producing chocolate and before producing
vanilla, he needs 45 minutes to set up the ice cream machine, but he needs only 10 minutes to
switch from strawberry to chocolate. When running, his ice cream machine produces at the rate
of 50 kg per hour no matter which flavour it is producing (and, of course, it can produce only one
flavor at a time).
1. Suppose Ankit wants to minimize the amount of each flavour produced at one time while still
satisfying the demand for each of the flavors. (He can choose a different quantity for each
flavour.) If we define a batch to be the quantity produced in a single run of each flavour, how
many kilograms should he produce in each batch?
2. Given your answer in part (a), how many kilograms of vanilla should he make with each
batch?
3. Given your answer in part (a), what is the maximum inventory of strawberry? (Assume
production and demand occur at constant rates.)

Question 2: Consider the following two step process Step A followed by Step B.
Step A has a processing time of 1 minute per unit, but no setup is required. Step B has a
processing time of 0.1 minute per unit, but a setup time of 9 minutes is require per batch. A
buffer with ample inventory is allowed between the two steps.
a) Suppose units are produced in batches of 5 (i.e., after each set of 5 units are produced, step B
must incur a setup of 9 minutes). What is the capacity of the process (in units per minute)?
b) What is the batch size that maximizes the flow rate of this process with minimal inventory?
Assume there is ample demand.

Question 3: Metal boxes for an auto component are manufactured in two process steps:
stamping and assembly. Each box is made up of three pieces: a base (one part A) and two sides
(two part Bs).
The parts are fabricated by a single stamping machine that requires a setup time of 120 minutes
whenever switching between the two part types. Once the machine is set up, the processing time
for each part A is one minute while the processing time for each part B is only 30 seconds.
Currently, the stamping machine rotates its production between one batch of 360 for part A and
one batch of 720 for part B. Completed parts move from the stamping machine to the assembly
only after the entire batch is complete.
At assembly, parts are assembled manually to form the finished product. One base (part A) and
two sides (two part Bs), as well as a number of small purchased components, are required for
each unit of final product. Each product requires 27 minutes of labour time to assemble. There
are currently 12 workers in assembly. There is sufficient demand to sell every box the system
can make.
a) What is the capacity of the stamping machine?
b) What batch size would you recommend for the process?

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