Question

A novelty coffee mug manufacturer produces 5 different designs that are sold at tourist information kiosks. The demand requirements for the coming tourist season is as follows:

Design	A	B	C	D	E
Demand (units)	500	750	600	800	450

The mugs can all be produced in the same workstations, but require different processing and setup times. The production information is in the following table:

Design	A	B	C	D	E
Batch Size (units)	50	50	50	50	50
Setup Time (hr/batch)	2	2	2.5	4	1.50
Processing Time (hr/unit)	0.15	0.15	0.25	0.25	0.10

The company wants to produce all the required mugs in one four-week period. It currently operates workstations that work 8 hours per day, 5 days per week, with a capacity cushion of 20%.

(a) Calculate the total time required to produce the mugs to meet the expected demand.

(b) Calculate the time available (taking into account the capacity cushion) for 1 workstation.

(c) How many workstations are needed to meet the production requirements?

(d) The company only has 4 workstations available. If it only operates its 4 stations, how many weeks does it need to meet the production requirements?

Answer 1

Required a)

Total time required = 157.5 + 582.5 = 740 hours

Required b).

Total time in one workstation = 4 weeks * 5 days a week * 8 hours a day = 160 hours

Spare Capacity = 20% of 160 = 32 hours

Time available for one workstation = 160 hours - 32 hours

= 128 hours

Required c)

Totla numbber of worksattaion required = 740 hours / 128 hours = 5.78

Thus a minimum of 6 workstations are required.

Required d)

If total of 4 statiosnare available, total hours required out of each workstation = 740 hrs / 4 = 185 hours

Total Number of week required from each workstation = 185 hours / 40 hours = 4.625 weeks

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