Wham-O makes 3 plastic toys; hula-hoops (product H), strawshooters (product S),

Question

Wham-O makes 3 plastic toys; hula-hoops (product H), strawshooters (product S), and wingdingers (product W). Wham-O has 4 resource types that are used in production - the process times required to make each toy at each resource type (and the number of processors of each type) are shown in the table below. For example, hula-hoops must go through Extrusion, Forming and Packaging (but hula-hoops do not require any process time at the "Finishing" step). Each resource is operated 10 hours each day.

For example, in one hour, Extrusion can process 40 hula-hoops if it only works on hula-hoops (i.e., one every 3 minutes, so 20 per hour, for each of the two processors), or it can process 30 strawshooters if it only works on strawshooters, or it can process 60 wingdingers if it only works on wingdingers (alternately, it can process some combination of H, S, and W). If demand is 100 units per day for hula-hoops, plus 100 units per day for strawshooters, plus 120 units per day for wingdingers, then what is the utilization of Forming?

1. 25%

2. 50%

3. 100%

4. 95%

Explanation / Answer

The Total Available time per day for the forming resource = 2 processors x 10 hours x 60 minute per hour = 1200 minute

The Production time utilized per day = 6*100 + 3*100 + 2*120 = 1140 minute

Utilization rate = Time utilized / Available time = 1140 / 1200 = 95%

ANSWER = 4.) 95%

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