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In: Operations Management

A steel product is manufactured by starting with raw material (carbon steel wire) and then processing...

A steel product is manufactured by starting with raw material (carbon steel wire) and then processing it sequentially through five operations using machines A to E, respectively (see table below). This is the only use that the five machines are put to. The hourly rates for each machine are given in the table. Answer the following questions. Use the original output rates to answer each question (i.e., disregard any changes mentioned in previous questions).

Operation: 1 2 3 4 5
Machine: A B C D E
Hourly unit output rate: 50 40 30 50 60

a. What is the maximum output per hour of the steel product?

b. By how much would the output be improved if B was increased to 50?

c. By how much would the output be improved if C was increased to 40?

d. By how much would the output be improved if C was increased to 50?

e. What is the effect on the system if machine A can only manage an output of 20 in one hour?

f. What is the effect on the system if machine C can only manage an output of 20 in one hour?

g. What is the effect on the system if machine B is allowed to drop to an output of 30 in one hour?

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