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Matching Supply With Demand: An Introduction To Operations Management

This document provides solutions to end-of-chapter problems from a textbook on operations management. It includes calculations for: 1) The time required to produce 100 units in an empty system where the bottleneck resource can produce at 0.1666 units per minute. 2) The labor costs, idle time, and utilization when producing with three resources at different capacities but demand exceeds the bottleneck capacity. 3) The labor content, cost per unit, and average labor utilization are calculated based on the resource capacities and cycle time determined by the bottleneck.

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225 views1 page

Matching Supply With Demand: An Introduction To Operations Management

This document provides solutions to end-of-chapter problems from a textbook on operations management. It includes calculations for: 1) The time required to produce 100 units in an empty system where the bottleneck resource can produce at 0.1666 units per minute. 2) The labor costs, idle time, and utilization when producing with three resources at different capacities but demand exceeds the bottleneck capacity. 3) The labor content, cost per unit, and average labor utilization are calculated based on the resource capacities and cycle time determined by the bottleneck.

Uploaded by

piracha104502
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Matching Supply with Demand: An Introduction to Operations Management

Solutions to End-of-Chapter Problems


(last revised February 25, 2008; make sure to visit www.cachon-terwiesch.net for the latest updates, excel files, ppt
files and other information)

Chapter 4
Q4.1. Empty System Labor Utilization
(a) Time to complete 100 units:
#1 The process will take 10+6+16minutes=32 minutes to produce the first unit.
#2 We know from problem xyz that resource 2 is the bottleneck and the process capacity is
0.1666 units per minute
#3 Time to finish 100 units
99 units
= 32 minutes +
=626 minutes
0.1666units/min

(b) + (c) + (d) Use Exhibit for Labor computations


#1 Capacities are:
Resource 1: 2/10 units/ minute=0.2 units/minute
Resource 2: 1/6 units/ minute=0.1666 units/minute
Resource 3: 3/16 units/ minute=0.1875 units/minute
Resource 2 is the bottleneck and the process capacity is 0.1666 units/minute
#2 Since there is unlimited demand, the flow rate is determined by the capacity and thereby
0.1666 units/minute; this corresponds to a cycle time of 6 minutes/unit
#3 Cost of direct labor =

6 * 10$/h
=6$/unit
60 * 0.1666units/h

#4 Compute the idle time of each worker for each unit:


Idle time for workers at resource 1=6min/unit*2 10 min/unit=2 min/unit
Idle time for worker at resource 2=6min/unit*1 - 6min/unit = 0 min/unit
Idle time for workers at resource 3=6min/unit*3 -16min/unit=2 min/unit
#5 Labor content=10+6+16 min/unit=32min/unit
#6 Average labor utilization=

32
=0.8888
32 + 4

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