Tavarek Industries Has the Theoretical Capability to Produce 127,500 Units

question 118

Essay

Tavarek Industries has the theoretical capability to produce 127,500 units per month but currently produces 102,000 units. The conversion cost for the month is $3,750,000. There are 8,500 production hours available within the plant per month. In addition to processing time, to produce a unit takes 15 minutes of move time and 10 minutes of wait time.
Required:
1. Compute the theoretical and actual velocities per hour
2. Compute the theoretical and actual cycle times (minutes per unit produced)
3. Compute the current MCE

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