The stamping machine would minimize inventory

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Reference no: EM132193610

Metal frames for kick scooters are manufactured in two steps: Stamping and assembly. The parts are fabricated by a single stamping machine that requires a set up time of 90 minutes after every 120 parts produced for preventative maintenance. Once the machine is set up, the activity time for parts is 30 seconds each piece. Completed parts move only when the entire batch is produced.

At assembly, parts are assembled manually to form the finished products. The part and a number of small purchased components are required for each unit of final product. Each product requires 30 minutes of labor time to assemble. There are 12 workers in assembly. There is sufficient demand to sell every scooter the system can make.

a. At the current batch sizes, what is the process capacity in units per hour? Is the bottleneck stamping, assembly, or both?

b. What batch size for the stamping machine would minimize inventory without restricting the flow rate?

Reference no: EM132193610

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