What is the throughput capacity of the system

Assignment Help Accounting Basics
Reference no: EM132822893

Gary's Gears is a production facility that produces metal gears. The first step is stamping, which happens at a press. There are two identical presses that operate simultaneously (gears can be stamped on either press). A press stamps one part at a time. It takes 1 minute to stamp a part, including loading and unloading. Before beginning a new batch of parts, there is a 20-minute setup involving die change. The batch size is 100 parts. In other words, after stamping 100 parts, the press must be set up again. The stamped parts are stored in a buffer area, called as the work-in-process (WIP) inventory rack. From here, the parts are taken to the furnace, where they are annealed (heat treated). Parts from different batches can be annealed together. To perform annealing, a boat (a type of fixture for holding stamped parts) loaded with parts is inserted into the furnace. While those parts are being annealed, newly stamped parts are loaded onto a spare furnace boat. Each boat can hold 70 parts. Once the boat is full, additional stamped parts are placed in the WIP inventory rack. After annealing is completed, the boat in the furnace is swapped with the boat outside the furnace and the next annealing cycle begins. Each annealing cycle takes a total of 30 minutes. The time to load and unload parts from a boat is very short, and can be neglected. The above system operates 8 hours a day, Monday through Friday. On Mondays, however, the furnace and both boats are cleaned. Thus, all parts stamped by the presses go straight to the WIP inventory rack on Mondays.

Problem 1. What is the throughput capacity of this system, in parts per week? In other words, how many parts can be processed per week?

Problem 2. What is the required buffer capacity of the WIP inventory rack?

Problem 3. What is the average inventory level in the WIP inventory rack (averaged over the factory operating hours)?

Problem 4. What is the system throughput capacity if the WIP inventory rack can hold only 500 parts?

Problem 5. What is the average number of factory operating hours that a part spends in the WIP rack in question 2? (Parts that do not wait in the WIP rack should be included in this average, and have zero waiting time by definition.)

Problem 6. What is the average number of factory operating hours that a part spends in the WIP rack in question 4? (Parts that do not wait in the WIP rack should be included in this average, and have zero waiting time by definition.)

Reference no: EM132822893

Questions Cloud

Determine the amount of liability Carrefour should recognize : Based on the above information, determine the amount of liability Carrefour should recognize in the statement of financial position on 31/12/2019
How much is the vat payable or excess vat input : Purchase of merchandise 350,000 vat inclusive payment to Meralco 5,125.00 vat inclusive rent 18,000 for the month vat inclusive. How much is the vat payable
Prepare journal entries to record the previous transactions : Prepare journal entries to record the previous transactions on the assumption that the goodwill (or revaluation) method is used.
Behavior and attitudes of organizational members : Analyze methods used to improve the behavior and attitudes of organizational members.
What is the throughput capacity of the system : What is the throughput capacity of this system, in parts per week? In other words, how many parts can be processed per week?
Prepare the journal entry necessary for each date : The dividend will be paid on April 29 to the shredders of record on April 19. Prepare the journal entry necessary for each date
Focus on the victims of natural disasters : Discuss the threat to donations caused by the organization's focus on the victims of natural disasters
Explain the perpetual and periodic inventory system : Differentiate between Merchandizing operations and Service operations. Explain the Perpetual and Periodic Inventory system. What is meant by COGS. COST OF GOODS
Calculate the dividend paid during the year : At the start of the accounting period the company has retained earnings of $500 000. Calculate the dividend paid during the year

Reviews

Write a Review

Accounting Basics Questions & Answers

  Financial accounting standards board

Go to the U.S. Securities and Exchange Commission's Web site at http://www.sec.gov and the Financial Accounting Standards Board'sWeb site athttp://www.fasb.org.

  Record transfer of equipment ownership in the books of lesse

Rhone-Metro, Record transfer of equipment ownership in the books of lessee". The amount of the journal entry is not for $453,627. Why?

  What percent of the original cost of apples property

What percent of the original cost of Apple's property and equipment remains to be depreciated as of September 28, 2013 and September 29, 2012?

  Explain what is the margin of safety in dollars

Morganti Corporation sells a product for $215 per unit. The product's current sales are 42,700 units. Explain what is the margin of safety in dollars?

  What three items would be shown on a statement of cash flows

What three items would be shown on a statement of cash flows (indirect method) from this information? Show your calculations.

  Audit objectives for complex financial instruments

Provide examples of important audit objectives for complex financial instruments and transactions For each audit objective that you identify, list one or more audit procedures that could be used to accomplish that objective.

  At december 31 2011 and 2010 miley corp had 180000 shares

at december 31 2011 and 2010 miley corp. had 180000 shares of common stock and 10000 shares of 5 100 par value

  Xyz ltd needs 1000 motors in its manufacture of cars it can

xyz ltd needs 1000 motors in its manufacture of cars. it can buy the cars from fast motors for 1250 each. xyzs plant

  How important to aware of what happen in environment

How important to be aware of what is happening in your environment relates to the company you are working with or to the business you own.

  Record the cash received for interest revenue and receivable

Record the purchase of U.S. Treasury bonds for cash and accrued interest. Record the cash received for interest revenue and receivable

  Determine the cost per equivalent unit of conversion

Dorchester uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March

  Analysis on prime cost and overhead variances

This problem belongs to basic Accounting questions and it discuss about writing an analysis on prime cost and overhead variances using a fictitious company. The analysis includes 6 direct material variances, 2 variable overhead variances and 4 dir..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd