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Consider the following two-step process: A B Processing time 1 0.5 Setup time 0 12 Step A has a processing time of 1 minute per unit, but no setup is required. Step B has a processing time of 0.5 minute per unit, but a setup time of 12 minutes is required per batch.
1. Suppose units are produced in batches of 8 (i.e., after each set of 8 units are produced, step B must incur a setup of 12 minutes). What is the capacity of the process (in units per minute)?
2. Suppose they operate with a batch size of 18 and with this batch size step A is the bottleneck. What would be the average inventory in step B?
3. What is the batch size that maximizes the flow rate of this process with minimal inventory?
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