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Capacity Bottlenecks Problems and Solutions Fall 2011_1

# Capacity Bottlenecks Problems and Solutions Fall 2011_1 -...

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Capacity Bottlenecks Problems and Solutions Problems 1. Three workers make wooden toys that are sold unpainted to hobby shops. Worker one does all the cutting and sanding and can produce the parts for ten toys each hour. She uses \$25 in parts and supplies for each toy. Worker two assembles the toys and can produce eight finished toys each hour. He uses \$9 in supplies for each toy. Worker three packages and ships the toys at rate of twelve per hour, and consumes \$4 of supplies for each toy. Each worker is paid \$12/hour. Ignore the fact that at the beginning of the day worker one must work for a short time before worker two can begin, etc. Assume all workers can begin and end at the same time of day. (a) What is the output of finished/shipped toys in a ten-hour day? (b) What is the daily profit if each toy sells for \$75. (c) If worker two is given an \$8 per hour helper and thereby increases capacity of that step to 11/hour, what is the effect on daily profit? Step 1 – cut & sand Step 2 – Assembly Step 3 – Packaging Time (in mins) Labor cost/unit Materials cost/unit (a) What is the output of finished/shipped toys in a ten-hour day? (b) What is the daily profit if each toy sells for \$75. (c) If worker two is given an \$8 per hour helper and thereby increases capacity of that step to 11/hour, what is the effect on daily profit?

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