Jack's Ice Cream Parlor Produces Two Types of Ice Cream

question 75

Essay

Jack's Ice Cream Parlor produces two types of ice cream on a contract basis for a major restaurant chain using a large blender. A batch of ice cream A requires a setup time of 45 minutes, a process mixing time of 1.2 minutes per gallon, and 50 gallons are made per day. Ice cream B requires the same machine to be cleaned and setup which takes 30 minutes, a process mixing time of 2 minutes per gallon, and 100 gallons are produced per day.

a. Compute the capacity required.
b. What percentage of total capacity required is setup time?

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Definitions:

Hierarchy Authority

A system of organization where power and decision-making responsibilities are clearly outlined and ranked.

Information-processing Technologies

Technologies utilized to gather, process, store, and disseminate information.

Design Dimensions

Fundamental aspects or characteristics that define and describe the structure, function, and scope of a design or system.

Centralization

The concentration of decision-making authority at upper levels of an organizational hierarchy.