Manufacturing plant contains three workstations

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Question

A line process at a manufacturing plant contains three workstations, A, B, and C in sequence A-B-C. The average production capacity at each station is as follows: Station A: 52 parts per hour; Station B: 18 parts per hour; Station C: 37 parts per hour Management suggests that new equipment be purchased to increase the capacity of Station C so that it can produce 60 parts per hour, which is also the demand rate for the parts. What is your response? Purchase the new equipment. Any improvement in capacity will save money. Purchase the new equipment and limit its production rate to 52 parts per hour. Do not purchase the new equipment. Management should focus on increasing the production capacity of Station B first. Do not do anything. The process seems to be running fine as it is.

Reference no: EM133733602

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