Fabrication 24 min./batch Assembly 1 7 min. /batch Fabrication 24 min /batch Pac
ID: 365327 • Letter: F
Question
Fabrication 24 min./batch Assembly 1 7 min. /batch Fabrication 24 min /batch Packaging 3 min. /batch Assembly 2 6 min./batch Fabrication 24 min./batch 26. Consider the assembly line above. The three fabrication operations run in parallel, such that each batch of 20 units only needs to go through one of the three fabrication operations. After that, each batch needs to go through both assenibly operations, which occur simultaneously (specifically, 10 components are made for each unit in the fabrication stagesome components are then assembled in the Assembly l area while others are assembled in the Assembly 2 area). The units are packaged and made ready for shipment in the final stage. What is the effective capacity of this system? (a) 2.5 batches /hr (b) 7.5 batches /hr (c) 8.57 batches /hr (d) 10 batches/hr (e) 20 batches/hr Borges Machine Shop, Inc., has a 1-year contract for the production of 2,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: GPE FMS DM Annual Fixed Cost $ 20,000 $ 30,000 $ 60,000 Per Unit Variable Cost $ 20 $ 16 $ 8 Answer next two questions by the information given above. 27. If the contract for the second and third years is pending and the estimated demand is 3,000 units, which option is the best alternative for Luis? (a) GPE (b) FMS (c) DM 10Explanation / Answer
(26)
Effective cycle time (per batch) for fabrication stage = 24 min / 3 = 8 min
Effective cycle tim time of Assembly 1 = 7 min
Effective cycle tim time of Assembly 2 = 6 min
Effective cycle tim time of Packaging = 3 min
S, effective cycle time of the entire line = max. (8, 7, 6, 3) = 8 min. So, capacity = 60/8 = 7.5 batches per hr..
(27)
For demand = 3000 units,
Total Cost (GPE) = 3000 x 20 + 20000 = 80000
Total Cost (FMS) = 3000 x 16 + 30000 = 78000
Total Cost (DM) = 3000 x 8 + 60000 = 84000
FMS is the cheapest option. So, the answer should be (b) FMS
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