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Calculate the average amount of time

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Reference no: EM132747260

Question - Spitfire Ltd uses a special machine to make a water-blasting unit used in household cleaning called a ZeroDirt. Spitfire estimates that it will receive 60 orders for the ZeroDirt during the coming year. Each order of ZeroDirt will take 140 hours of machine time. The annual machine capacity is 9,800 hours.

Required -

1. Calculate the average amount of time that an order for ZeroDirt will wait in line before it is processed (i.e., waiting time). Show your calculations.

2. Calculate the average manufacturing cycle time per order for ZeroDirt. Show your calculations.

3. Spitfire Ltd. is considering introducing a new product, RapidWash. The company expects it will receive 40 orders of RapidWash in the coming year. Each order of RapidWash will take 60 hours of machine time. Assuming the demand for ZeroDirt will not be affected by the introduction of RapidWash, calculate (show your calculations):

(a) the average waiting time for an order received; and

(b) the average manufacturing cycle time per order for each product, if Spitfire Ltd. introduces RapidWash.

Reference no: EM132747260

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