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MMC has a chocolate factory in Leicester City, England. It makes three kinds of

ID: 384757 • Letter: M

Question

MMC has a chocolate factory in Leicester City, England. It makes three kinds of Chocolate: milk chocolate, mint chocolate and dark chocolate. It cycles between producing these three products. Next Table provides data on these three products. Mint Dark Chocolate Milk Chocolate Chocolate Demand (kg/hour) 10 15 Setup time (minutes) 45 30 75 The line produces them at the same rate (when operating): 50 kg per hour. One kind of chocolate is produced at a time. Suppose MMC produces 50 kg of Milk chocolate, 75 kgs of mint chocolate, and 25 kgs of dark chocolate in each cycle. What is the utilization of the process?

Explanation / Answer

Since set up time is high for Dark chocolate. This is the bottolneck of the process.

Production rate = 50 kg / hr

So process capcity = 50 / (1 hr + 75 min) = 22.22 kg / hr

Since demand for milk chocolate is 10 kg per hour, So to produce 50 kg of milk chocolate production will be doen in 5 cycles.

So time taken to produce 50 kg of milk chocolate = ( 1hr + 45 minutes ) * 5 = 525 minutes

Similar way time taken to produce 75 kg of mint chocolate = ( 1hr + 30 minutes ) * 5 = 450 minutes

Similar way time taken to produce 75 kg of dark chocolate = ( 1hr + 75 minutes ) * 5 = 675 minutes

Total time taken to produce the chocolates = 1650 minutes = 27.5 hrs

Flow rate = (50 kg + 75 kg + 25 kg) / 27.5 hrs = 3.63

Utilization = Flow rate / Process capacity = 3.63 / 22.22 = 16.36%

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