Determine the over production waste

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Reference no: EM132307482

1. The demand for product A is scheduled for 900 in May and 1200 in Oct. The shelf life of the unit is 4 months and the next deman is scheduled for next year . Based on a lot size of 500 units per batch, the first run will be 1000 units and the second will be 1500 The cost of storage is $50/month/unit, while the standard cost of the unit is $490. Determine the over production waste.

2. An operator arrives and found that his machine has not been properly setup. It took him 20 minutes to finish the setup process. During the shift a machine part was damaged causing a downtime of 1.5 hours. At the end of the shift the material handler provides him with the wrong material and he waits another 5 minutes to continue and finish a regular shift of 7.5 hours. The supervisor request him to stay and complete the scheduled order in overtime which requires a double pay of his regular rate of $10.50/hour. What is the Waiting time waste cost?

3. I am having trouble figuring out how to find the arrival rate for question 14.6 in the Analytics and Decision Support in Healthcare Operations Management, author Yasar A. Ozcan. I believe I have to multiply the number of hours the clinic is open which would be 10 hours a day times 576 days in the study. Then divide that by the 91,699 visits during that time. There also is a patient registration average of 5.2 minutes per patient regardless of the patient category. I am not sure what to do after that, though to get arrival rate and service rate per hour per patient.

Reference no: EM132307482

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