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Milk Dark Demand (Kgs Per Hour) Switchover Time (Min) Production Rate Per Hour

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1. Metal window boxes are manufactured in two process steps: stamping & assembly.

Each
window box is made up of a component set with 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 set
up time of 50 minutes whenever switching between the two part types. Once, the machine
is set up, the processing time for all parts (either type A or type B) is 12 seconds. Completed
component sets move from the stamping machine to assembly, where they are assembled
manually to form the finished product. One base (part A) and two sides (two parts Bs), as
well as a number of small purchased components, are required for each unit of final
product. Each product requires 10 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 if it operates with a production cycle of
250 component sets?
b) What is the flow rate of the process if it operates with a production cycle of 500
component sets?
c) What is the utilization of the stamping machine if it operates with a production cycle of
500 component sets?
d) What is the maximum inventory of part A if it operates with a production cycle of 500
component sets?
e) With what batch size (in component sets) should it operate to maximize the flow rate of
the process while minimizing the inventory in the process?

2. Cadbury has a chocolate factory in Pithampur, Indore. For Easter, it makes two kinds of
“Easter Eggs”: Milk Chocolate and Dark Chocolate. It cycles between producing milk and dark
chocolate eggs. Table provides data on these products:

Milk Dark
Demand (Kgs per hour) 500 200
Switchover time (min) 60 30
Production rate per hour 800 800

For example, it takes 30 minutes to switch production from milk to dark chocolate, but even
more time, 60 minutes, to switch from producing dark to milk chocolate eggs (because this
switch requires the line to be cleaned more carefully). Demand for milk chocolate is higher
(500 Kgs per hour vs 200 Kgs per hour), but the line produces them at the same rate (when
operating): 800 Kgs per hour.

a) Suppose Cadbury produces 2500 Kgs of milk chocolate and 1000 Kgs of dark chocolate in
each cycle. How much chocolate (in Kgs) does Cadbury produce per hour?
b) Suppose Cadbury produces 3000 Kgs of milk chocolate and 1200 Kgs of dark chocolate in
each cycle. What would be the utilization of this process?
c) Suppose Cadbury produces 8000 Kgs of milk chocolate and 3200 Kgs of dark chocolate in
each cycle. What would be the maximum inventory of milk chocolate?
d) How many Kgs of milk and dark chocolate should be produced with each cycle (a batch
of milk and a batch of dark chocolate) so as to minimize inventory while satisfying
demand?

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