The Seawall Corporation uses an injection molding machine to make a plastic prod

Question

The Seawall Corporation uses an injection molding machine to make a plastic product, Z39, after receiving firm orders from its customers. Seawall estimates that it will receive 50 orders for Z39 during the coming year. Each order of Z39 will take 80 hours of machine time. The annual machine capacity is 5,000 hours. Please show work 1. Calculate (a) the average amount of time that an order for Z39 will wait in line before it is processed and (b) the average manufacturing cycle time per order for Z39.

Explanation / Answer

We have   
AMLT = Average manufacturing lead time
AOWT = Average order wait time
AOMT = Average order manufacturing time = 80Hrs
AMLT = AOWT + AOMT

a. The average amount of time that an order for Z39 will wait in line before it is
processed
AOWT =[(Average Annual Orders Expected) * (AOMT)^2]/
[2*(Annual Mach Capacity - (Average Annual Orders Expected *AOMT))]   

AOWT = (50*80*80)/(2 *(5,000 - (50 *80)))

AOWT = 320,000 / (2*(5,000 - 4,000))

AOWT = 320,000/2,000

So Average order wait time AOWT = 160 hours per order .................Ans (a)

b. The average manufacturing lead time per order for Z39.

AMLT = AOWT + AOMT

AMLT = 160 + 80 = 240 hours

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