consider a simple process that makes two kinds of shakes: strawberry and banana.

Question

consider a simple process that makes two kinds of shakes: strawberry and banana. demand for strawberry shakes is 10 gallons per hour, while demand for bana shakes is 7.5 gallons per hour. switching from one type of shake to another requires 30 minutes to clean the production equipment so that one flavor dose not distrupt the flavor of the next shake. once production begins, the process can make 30 galons per hour of either type of shake, given these parameters, please evalute a production cycle that minimizes inventory while satisfying demand.

MSP1. how much shake is produced in total over the course of one production cycle ( in galone )?

MSP2. how much strawberry shake is produced in one production cycle (in galon)?

Explanation / Answer

Demand for strawberry shakes    = 10 gallons per hour

Demand for banana shakes         = 7.5 gallons per hour

Maximum production capacity = 30 gallons per hour

Time taken for production equipment cleaning = 30min = 0.5 hour

Safety stock should be done for 2 hour, as there will be 2 cleaning periods (0.5hour*2) & production time for the other shake (1hour).

Safety stock for Strawberry shake            = 20 gallons

Safety stock for banana shake                   = 15 gallons

Hence during 1 cycle, we need to order for the safety stock + demand.

The order for strawberry shake                 = 10+20              = 30 gallons.

The order for banana shake                     = 15+7.5               = 22.5 gallons

MSP1. In one production cycle, the milkshake produced is 30+22.5 = 52.5 Gallons

MSP2. Strawberry shake produced in one production cycle is 30 Gallons

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