In: Operations Management
Given the following information concerning jobs awaiting processing at a single work center, what is the processing sequence using the critical ratio (CR) rule?
| JOB | Processing time at this operation
(hrs) at this operation (hrs.)  | 
Processing time remaining at other operations (hrs.)  | 
Final due date ( hrs.)  | 
| D | 4 | 4 | 9 | 
| A | 8 | 6 | 38 | 
| O | 6 | 10 | 24 | 
| I | 3 | 8 | 20 | 
| N | 5 | 14 | 32 | 
we know that
Critical ratio = ( Due date - Today's Date ) / Total shop time remaining
In this Case
Due date - Today's Date = Time remaining until a Job's Due date which is given by "Final due date (hrs) ----B
Total shop time remaining = Processing time remaining at other operations (hrs) ------A
So CR = B / A
Below is the Critical ratio calculation for all the jobs
| Job | Processing time at this operation (Hrs) | Processing time remaining at other operations (hrs) ---(A) | Final due date (hrs) ----(B) | Critical ratio = B / A | 
| D | 4 | 4 | 9 | 2.25 | 
| A | 8 | 6 | 38 | 6.33 | 
| O | 6 | 10 | 24 | 2.4 | 
| I | 3 | 8 | 20 | 2.5 | 
| N | 5 | 14 | 32 | 2.28 | 
Now sequence should be arrived by arranging the critical ratio in an increasing order
So 2.25 < 2.28 < 2.4 < 2.5 < 6.33
The processing sequence should be
D --> N --> O --> I --> A
| Sequence | Job | CR | 
| 1 | D | 2.25 | 
| 2 | N | 2.28 | 
| 3 | O | 2.4 | 
| 4 | I | 2.5 | 
| 5 | A | 6.33 | 
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