## Matching Supply with Demand

Business

## Quiz 6 :

Batching and Other Flow Interruptions

The capacity of a system of process is determined by the capacity of its bottleneck resource. Therefore, the capacity can only be improved by improving the bottleneck's capacity. When it comes to setup requirement and batch production, increasing batch size in the bottleneck station is always advantageous from the point of view of capacity. However, if there is a setup requirement in a non-bottleneck station, reducing the batch size may be more advantageous because it will reduce the inventory level and lead time. Note the following information form the question in order to compute the capacity of the stamping machine and recommended batch size. Setup time to produce part A = 120 minutes Unit processing time for part A = 1 minute Setup time to produce part B = 120 minutes Unit processing time for part B = 0.5 minutes Batch size for the final assembly = 360 units a. Each final assembly consists of one unit of part A and two units of part B. So, Compute the capacity of stamping machine using the following formula: Compute the capacity in units per hour as follows: So, the capacity of the stamping machine is b. Compute the flow rate of the assembly process as follows: There are 12 workers in the assembly process. Each final assembly takes 27 minutes to complete. Therefore, the effective flow rate is Compute the recommended batch size using the following formula: So, the recommended batch size will be

The capacity of a system of process is determined by the capacity of its bottleneck resource. Therefore, the capacity can only be improved by improving the bottleneck's capacity. When it comes to setup requirement and batch production, increasing batch size in the bottleneck station is always advantageous from the point of view of capacity. However, if there is a setup requirement in a non-bottleneck station, reducing the batch size may be more advantageous because it will reduce the inventory level and lead time. Calculate the capacity of the process using the following data Setup (calibration) time for the urine test = 30 minutes Present batch size for the urine test = 300 samples Setup (calibration) time for the blood test = 20 minutes Processing time for complete blood test per sample = 1.5 minutes Present batch size for the blood test = 100 samples (70 basic and 30 complete tests) a. Compute the capacity using the following formula: So, So, the capacity is b. The required capacity is 2.5 samples per minute. So, to attain the given capacity, the batch size should be c. Use the following formula to compute the capacity of basic blood test. So, So, the capacity of conducting the basic blood test is

The capacity of a system of process is determined by the capacity of its bottleneck resource. Therefore, the capacity can only be improved by improving the bottleneck's capacity. When it comes to setup requirement and batch production, increasing batch size in the bottleneck station is always advantageous from the point of view of capacity. However, if there is a setup requirement in a non-bottleneck station, reducing the batch size may be more advantageous because it will reduce the inventory level and lead time. a. Use the following formula to compute the recommended batch size to minimize the overall production/ inventory and still satisfying the demand as follows: The overall flow rate will be the total demand rate i.e. . The overall setup time The processing time for one kg is So, Rounding off, the optimal batch size is b. The production of a particular item should be produced as per the demand ratio. So, So, the ideal batch size for the product F is c. Compute the maximum inventory using the following formula: The flow rate for the product C is 15 kg per hour. The processing time is So, So, the maximum inventory of product C will be

_{2}and to step 3. A unit can leave the system the moment it is completed at step 3. Assume step 1 needs to be set up before the beginning of production. d. Using the current production batch size of 50 parts, how long would it take to produce 20 parts starting with an empty system Assume that the units in the batch do not have to stay together; specifically, units are transferred to the next step the moment they are completed at any step. Assume step 1 needs to be set up before the beginning of production. e. What batch size would you choose, assuming that all units of a batch stay together for the entire process