Production cycle to minimize inventory

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Reference no: EM132297485

A production process consists of two resources. One resource consists of one machine that is used to make 3 different parts. Those parts are needed to make the one product. The parts are labeled, A, B and C. To make a product requires 3 A parts, 2 B parts and 1 C part. Switching production from one type of part to another requires 2.5 minutes. Once setup to make a part, the machine works at the rate of 8 A parts per minute, 5 B parts per minute, and 2 C parts per minute.

The second resources is an assembly process with 4 workers. The processing time at assembly is 4.5 minutes.

Demand for this product occurs at the rate of 42 per hour.

1. How many part As should be made in a production cycle to minimize inventory without constraining the flow rate through the process? A non-integer answer is acceptable.

2. Suppose they operate with a production batch of 180 A parts, 120 B parts and 60 C parts. What is the average inventory of part B?

Reference no: EM132297485

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