Question
In: Other
C&A produces three kinds of bread: wheat, white, and multigrain. The data on these products are...
C&A produces three kinds of bread: wheat, white, and multigrain. The data on these products are given below:
|
Wheat |
White |
Multigrain |
|
|
Demand (lbs per hour) |
50 |
20 |
10 |
|
Changeover time (min) |
60 |
30 |
45 |
|
Production rate (lbs per hour) |
200 |
200 |
200 |
How many lbs of white bread should C&A produce with each batch in order to minimize inventory while satisfying demand?
O 37.5
O 75
O 187.5
O 300
Solutions
Expert Solution
Total change over time = 60 + 30 + 45 = 135 minutes = 2.25 hours
Total Demand = 50 + 20 + 10 = 80 lbs / hr
Processing time for Wheat bread = (1 / 200) hr
Processing time for White bread = (1 / 200) hr
Processing time for Multigrain bread = (1 / 200) hr
Let the batch size be Z
Total Processing time = (1/200) * Z
Total Batch time = Total processing time + Total Set-up time = (1/200)*Z + 2.25
Process capacity = Total output / Total time = Z / ((1/200)*Z + 2.25)
Capacity required = Total Demand = 80 lbs / hr
Hence, Z / ((Z/200) + 2.25) = 80
Z = 80 * ((Z / 200 ) + 2.25)
Z * 200 = 80Z + 80*200*2.25
Z = 300 lbs
Total batch size = 300 lbs
Proportion of White bread = (50/80) * 300 = 75 lbs
Answer: 187.5
Amanda K answered 2 years agoRelated Solutions
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27.00
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Contribution margin ratio
40
%
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30
%
The company estimates that it can sell 750 units of each product
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