Anyone can help with question #2, please? Thanks! 1. Metters Cabinets, Inc., nee
ID: 385775 • Letter: A
Question
Anyone can help with question #2, please? Thanks!
1. Metters Cabinets, Inc., needs to choose a production method for its new office shelf. It could implement either a product focus process or repetitive process. To help accomplish this, the firm has gathered the following cost data Variable Cost (per unit) Annual Fixed Cost 50,000 $25,000 Process Type Labor $10 Material $10 $12 Product Focus Repetitive Focus Compare these two process types using a crossover chart. Find the production volume that Metters Cabinets is indifferent between the two process strategies 2. Wally's Widget Warehouse takes orders from 7 AM to 7 PM. The manager wants to analyze the process and has provided the process flow diagram shown below (with capacity rates at each step). There are three steps required to shipa customer order. The first step is to take the order from a customer (one customer places one order). The second step is to pick the order for the customer, and then they have to pack the order ready for shipping. There are currently only three workers taking care of these three steps; one for each. Take Orders 100 customers/ Pick Orders Pack Orders 60 customers/ 80 customers/ hour hour hour Wally wants to figure out the following a. How many customer orders at most can this process deal with per day assuming a 12-hour working time? b. What is the process time of the order picker? c. If orders arrive every 1.5 minutes, what is the process utilization? (Hint: how many orders have arrived in one hour as the input?) d. Wally is not satisfied with the number you give in (a); he wants the process capacity to become larger. There is a worker recently hired. Who do you want the new worker to help? Order taker, picker, or packer? Why? e. Following question (d). Assume that the new worker can help double the capacity rate at the step he is sent to. Would hiring this new worker double the number you give in question (a)? Why?Explanation / Answer
Answer to question 2 :
Step 1 : Take order = 100 customers/ hour
Step 2 : Pick orders = 80 customers/ hour
Step 3 : Pack orders = 60 customers/ hour
The step with least capacity is step 3 and hence is the bottleneck. The capacity of the process which is determined by the least capacity step will therefore be 60 customers/ hour
Therefore customer orders this process can deal with per day of 12 hours
= 60 / hour x 12 hours
= 720 hours
Processing time of the order picker = 60/80 minutes = 0.75 minutes per order
Order arrival rate ( @ once every 1.5 minutes ) = 60/1.5 = 40 customers per hour
Process utilization
= Order arrival per hour/capacity of process per hourx 100
= ( 40/60) x 100
= 66.67 5 ( rounded to 2 decimal places )
The worker should help the “Packer”
The purpose of hiring additional worker is to increase the flow rate of the process and therefore output. The way to increase the output is to debottleneck the bottleneck activity and therefore worker should be allocated to “Packer”
In such case, the revised bottleneck step is “Pick orders” which is 80 customers/ hour
The revised capacity of the whole process is now = 80 customers/ hour x 12 hours = 960customersper day
The earlier capacity was 720 customers per day
Therefore ,
Revised capacity/ earlier capacity
= 960/720
= 1.33
Therefore, hiring this new worker would not double the number given in ( a )
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