A manufacturing company has a small production line dedicated to the production

Question

A manufacturing company has a small production line dedicated to the production of a particular product. The line has four stations in serial. Inputs arrive at station 1 and the output from station 1 becomes the input to station 2. The output from station 2 is the input to station 3 and so on. The output from station 4 is the finished product. Station 1 can process 2,200 units per month, station 2 can process 2,300/month, station 3 can process 2,000/month, and station 4 can process 2,100/month.

a. What station sets the maximum possible output from this system?

b. What is the maximum output number?

Explanation / Answer

Answer :

a. The maximum possible output from the system would be set by station 3.This is beacuse station 2 has excess capacity for 100 units , so all units of station 1 (2200 units) will be processed in station 2.But station 3 has lesser capacity compared to station 1,2 & 4, which is 2000 units.The Scarce capacity shown in station 3 shows that station 3 wont be able to process more tahn 2000 units , even if more units can be produced by preceding stations.hence station 3 will set maximum possible output from the system.

This is why station 1 will have to restrict its maximum possible output to 2000 units.This will result in lesser production in station 1 , 2 & 4 as shown in below table, represented by surlpus capacity.

It is assumed that the items at preceding station cant be stored as stock for future so the stations will have to produce matching with its maximum capacity

b. maximum output number.

based on a. above , station 3 will set maximum output from the system, hence lets consider 2000 units routed from station 1, whichj will be wholly processed & transferred to station 2 , which will again process it fully , & transfer to station 3 , which will again process & transfer to station 4 , which will finally produce final output, which will be 2000 units.

station capacity units balance from last station 1 2200 0 2 2300 100 - surlpus capacity 3 2000 -200- scarce capacity 4 2100 100 - surplus capacity

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