Unformatted text preview: (accepting payment) = 30 minutes c. What is the hourly capacity? (20 points) 60/12=5 dozen/hour, or 60 cookies/hour. (You get partial credit if you have the following answers: 60/10=6 dozen/hour, 15pts (60-30)/12+1=3.5 dozen/hour, 10 pts (60-30)/10+1=4 dozen/hour, 5 pts) 2. News reported that the inventory of unsold new homes rose to 10-months supply. If the annual demand for new homes is 960,000 units. How many unsold home are available? (40 points) Throughput rate = 960,000 units/year = 80,000 units/month (10pts) Little’s Law: WIP = Throughput time * Throughput rate (10pts) No credit for Little’s Law: Throughput time = WIP / Throughput rate WIP = Throughput time * Throughput rate = 10 * 80,000 = 800,000 units (20pts)...
View Full Document
- Spring '07
- Management, Baking, Bottleneck, Throughput rate WIP, Kristine Cookies case, Kristine Cookies, Operations Management Fall