Consider the Process Shown That Is Trying to Produce to Meet

question 154

Essay

Consider the process shown that is trying to produce 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 1000 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:

Marginal Benefit

The supplementary enjoyment or advantage derived from consuming an extra unit of a good or service.

Marginal Cost

The amount of money needed to manufacture an extra unit of a good or service.

Diagram

A simplified drawing or plan that represents the essential features of something, often used for explanation or clarification.

Coase Theorem

A principle that asserts if trade in an externality is possible and there are no transaction costs, parties can negotiate to solve the problem privately.