C&A produces three kinds of bread: wheat, white, and multigrain. The data on the
ID: 351462 • Letter: C
Question
C&A produces three kinds of bread: wheat, white, and multigrain. The data on these products are given below:
Wheat
White
Multigrain
Demand (lbs per hour)
50
20
10
Changeover time (min)
60
30
45
Production rate (lbs per hour)
200
200
200
How many lbs of white bread should C&A produce with each batch in order to minimize inventory while satisfying demand?
O 37.5
O 75
O 187.5
O 300
*Please, clearly demonstrate how you arrive to your answer. Thank you!
Wheat
White
Multigrain
Demand (lbs per hour)
50
20
10
Changeover time (min)
60
30
45
Production rate (lbs per hour)
200
200
200
Explanation / Answer
Demand = 20 lbs per hour
Production rate = 200 lbs per hour
Setup time = 30 minutes
From the given data,
Total time taken to make 200 units = 90 minutes……. (processing time + setup time)
This means 1 unit requires 200 / 90 minutes = 2.22 minutes on an average
The demand is 20 units per hour, so to keep the inventory at a minimum level, the production should be done in the minimum batch size possible, which is 37.5 units.
Thus the correct answer is 37.5 lbs
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