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# solutions - Problem 1 W e are asked to estimate the flow...

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Problem 1: We are asked to estimate the flow rate of cars. R in cars/hour. We need inventory (I) and also we need the flow time (T). I = 24 cars on a quarter mile = 24 x 4 = 96 cars on a mile stretch of the highway Flow time (T) = on 60 miles, you spend one hour. So, on one mile, you spend 60/60 = 1 minute Thus, since I = R x T, the flow rate R = 96 cars/minute = 96 x 60 cars = 5760 cars per hour Problem 2: How long does it take to produce the first unit = 16 + 7 + 12 + 5 = 40 minutes How long does it take for the remaining 99 = 16 x 99 = 1584 minutes Total time = 1584 + 40 = 1624 mins = 27.07 hours labor content = labor on a single unit of item = 16 + 7 + 12 + 5 = 40 minutes Average labor utilization = 40 / (40 + idle times) = 40 / (40 + 0 + 9 + 4 + 11) = 0.625 Alternatively = (1 + 7/16 + 12/16 + 5/16)/4 = 0.625 Cost of direct labor = total wages / flow rate = \$40 / (60/16) = \$10.67 per unit Practice Problem 3: To calculate the bottleneck, we need to calculate the capacities. What is the capacity at step 1? It is

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## This note was uploaded on 11/21/2011 for the course BUS 351 taught by Professor Diwaskc during the Spring '10 term at Emory.

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solutions - Problem 1 W e are asked to estimate the flow...

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