I was able to figure out the process schedule (orange juice for 1.5 hours, 0.5 h

Question

I was able to figure out the process schedule (orange juice for 1.5 hours, 0.5 hour break, apple juice for 1.25 hours, 0.5 hour break) but I'm not sure how to calculate maximum inventory. help?

e) How do these process improvements affect the bottom line of Honest foods? Be precise here- am essentially looking for how specific process improvements translate to increases in profits Steel City Juice (10 points) Steel City Juice is a local company that makes two kinds of juice: orange juice and apple juice Demand for orange juice is 30 barrels/hr, while demand for apple juice is 20 barrels/hr. The company only has one machine to extract juice from raw fruit. The machine can extract orange juice at a speed of 75 barrels/hr, or apple juice at 60 barrels/hr. Switching from one type to the other requires 30 minutes cleanup time. a) Please provide a production schedule that () cycles repeatedly through the two kinds, (i) meets required demand, and (ii) minimizes the amount of inventory held. (Here it is assumed that the production machine runs 24 hours a day, 7 days a week) ) What is the maximum inventory level of apple juice? 4. Cougar Mountain (10 points)

Explanation / Answer

b) From the calculations of part a

i.e. Z for orange juice = 1.5 hrs

and Z for Apple Juice = 1.25 hrs

Let us calculate peak inventory for each

Type barrels/hr Demand for orange juice 30 demand for apple juice 20 Extract organe juice at 75 Extract apple juice at 60 Clean up time 30 min

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