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Sarah\'s Organic Soap Company makes four kinds of organic liquid soap- \"regular

ID: 384838 • Letter: S

Question

Sarah's Organic Soap Company makes four kinds of organic liquid soap- "regular," "lavender," "citrus," and "tea tree." Demand for the four scents are 150, 110, 75, and 55 kgs per hour respectively. Sarah's production process can produce any soap at the rate of 415 kgs per hour, but 1.4 hours are needed to switch between scents. During those switchover times, the process doesn't produce any soap. Sarah wants to choose a production schedule that (1) cycles repeatedly through the four scents, (2) meets the required demand and (3) minimizes the amount of inventory held How many kgs of "regular" should Sarah produce before switching over to another scent? kgs

Explanation / Answer

Rate of production of soap - 415 Kgs per hour

Down time for switch over from each soap scent - 1.4 hrs

Total down time in a day for production of all four cents = 5.6 hours per day

Actual production time per day = 18.4 hours

Based on demand the optimum share for production of Regular scent = 150 kgs (39%), Share of lavender scent = 110 kgs (28%), Share of citrus scent = 75 kgs (19%), Share of tea tree =55 (14%).

Hence optimum production schedule should be as follows to meet the demand and minimize the inventory held :-

Regular - 39% of 18.4 hrs - 7.17 hrs before switching over to another scent - Total production - 2975 Kgs

Lavender - 28% of 18.4 hrs - 5.15 hrs before switching over to another scent - Total production - 2137 Kgs

Citrus - 19% of 18.4 hrs - 3.4 hrs before switching over to another scent - Total production - 1411 Kgs

Tea Tree - 14% of 18.4 hrs - 2.5 hrs before switching over to another scent- Total production - 1037 Kgs

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