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Consider the following batch-flow process consisting of three process steps performed by three machines:
STEP 1 Processing Time: 0.25 Min/Part Processing Time: 0.20 Min/Part Processing Time: 0.15 Min/Part
STEP 2 Setup Time: 30 Minutes Setup Time: 20 Minutes Setup Time: 45 Minutes
STEP 3 Work is processed in batches at each step. Before a batch is processed at a step, the machine at that step must be set up. (During a setup, the machine is unable to process any product.) Assume that there is a dedicated setup operator for each machine (i.e., there is always someone available to perform a setup at each machine.)
a. What is the capacity of step 1 if the batch size is 35 parts?
b. For what batch sizes is step 1 (2, 3) the bottleneck? In other words, at what batch sizes do each step become the bottleneck?
What is the present value of $10000 to be received 20 years from now , if the principle is invested at 8% per year, compounded annually ?
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