Consider a process consisting of five resources that are operated eight hours pe

Question

Consider a process consisting of five resources that are operated eight hours per day. The process works on three different products, A, B, and C: Demand for the three different products is as follows: product A, 40 units per day; product B, 50 units per day; and product C, 60 units per day. What is the bottleneck? What is the flow rate for each flow unit assuming that demand must be served in the mix described above (i.e., for every four units of A, there are five units of B and six units of C)? (* indicates that the solution is at the end of the book)

Explanation / Answer

Demand

Product A: 40 units per day= 5 units per hours

Product B: 50 units per day= 6.25 units per hour

Product C: 60 units per day= 7.5 units per hour

Capacity= number of workers (60)

Total workload

processing time for A * Hourly demand for A

processing time for B * Hourly demand for B

processing time for C* Hourly demand for C

Implied Utilization = Total workload per capacity

The bottleneck is when implied utilization is 1

Resource Capacity Total Workload Implied Utilization 1 120 5*5+5*6.25+5*7.5=93.75 78.125% 2 120 82.5 68.75% 3 60 60 1 4 60 41.25 68.75% 5 120 97.5 81.25%

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