Consider the Following Production Process

question 91

Essay

Consider the following production process. It is trying to meet a market demand of 500 units per week.

Step 1: Material release schedule
Step 2: Drilling (capacity is 500 units/week)
Step 3: Tapping (capacity is 450 units/week)
Step 4: Grinding (capacity is 600 units/week)
Step 5: Coating (capacity is 400 units/week)
Step 6: Inspection (capacity is 1,000 units/week)
a. Where should buffers be placed?
b. Which resource is the drum?
c. Where should the rope be placed?
d. Which resource is the bottleneck?
e. Which resource is the CCR?

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a particular price over a specified period.

Rent Controls

Government-imposed limits on the amount landlords can charge for leasing a home or apartment.

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Maintenance

The process of preserving or keeping equipment, machinery, buildings, etc., in working order by conducting regular check-ups and repairs.