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2. Suppose that Alice, David, and Mike are working in a furniture factory, making chairs. The chair- making process consists of four activities: cutting and shaping the wood (5 min/chair), assembling the chair frame (5 min/chair), attaching the seat (10 min/chair), and finally, painting the chair (7 min/chair). Alice is responsible for the wood activity; David is responsible for the frames and painting activities and Mike is responsible for the seat activity. Each person can only do one activity at a time. The process flow diagram looks as below. Wood 5 min/chair Alice Frames 5 min/chair David Seats 10 min/chair Mike Painting 7 min/chair David a. Calculate the capacity of each resource. What is the bottleneck of the process and what is the capacity of the process? b. Calculate the utilization of each resource assuming that the process is operating at maximum capacity. c. Suppose that Alice is paid $10 per hour but only for the amount of time that she actually works, that David is paid $14 per hour but only for the amount of time that he actually works, and that Mike is paid $7 per hour but also only for the amount of time that he actually works. Suppose also that each chair sold brings a revenue of $130 and has raw materials cost of $60. Assuming that the chair factory is operating at its maximum capacity, what is the profit per hour after paying Alice David, and mike's salaries? d. If everyone could perform all four tasks and therefore the labor is pooled across all activities, what would be the capacity of the process? e. Suppose there is an additional activity after Painting where the chair needs to dry, which takes 10 minutes per chair. Assume there is infinite space for chairs to dry, and it does not require anyone to be there. How does the capacity of the process in steady state change due to this additional step?

2. Suppose that Alice, David, and Mike are working in a furniture factory, making chairs. The chair- making process consists of four activities: cutting and shaping the wood (5 min/chair), assembling the chair frame (5 min/chair), attaching the seat (10 min/chair), and finally, painting the chair (7 min/chair). Alice is responsible for the wood activity; David is responsible for the frames and painting activities and Mike is responsible for the seat activity. Each person can only do one activity at a time. The process flow diagram looks as below. Wood 5 min/chair Alice Frames 5 min/chair David Seats 10 min/chair Mike Painting 7 min/chair David a. Calculate the capacity of each resource. What is the bottleneck of the process and what is the capacity of the process? b. Calculate the utilization of each resource assuming that the process is operating at maximum capacity. c. Suppose that Alice is paid $10 per hour but only for the amount of time that she actually works, that David is paid $14 per hour but only for the amount of time that he actually works, and that Mike is paid $7 per hour but also only for the amount of time that he actually works. Suppose also that each chair sold brings a revenue of $130 and has raw materials cost of $60. Assuming that the chair factory is operating at its maximum capacity, what is the profit per hour after paying Alice David, and mike's salaries? d. If everyone could perform all four tasks and therefore the labor is pooled across all activities, what would be the capacity of the process? e. Suppose there is an additional activity after Painting where the chair needs to dry, which takes 10 minutes per chair. Assume there is infinite space for chairs to dry, and it does not require anyone to be there. How does the capacity of the process in steady state change due to this additional step?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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2. Suppose that Alice, David, and Mike are working in a furniture factory, making chairs. The chair- making process consists of four activities: cutting and shaping the wood (5 min/chair), assembling the chair frame (5 min/chair), attaching the seat (10 min/chair), and finally, painting the chair (7 min/chair). Alice is responsible for the wood activity; David is responsible for the frames and painting activities and Mike is responsible for the seat activity. Each person can only do one activity at a time. The process flow diagram looks as below. Wood 5 min/chair Alice Frames 5 min/chair David Seats 10 min/chair Mike Painting 7 min/chair David a. Calculate the capacity of each resource. What is the bottleneck of the process and what is the capacity of the process? b. Calculate the utilization of each resource assuming that the process is operating at maximum capacity. c. Suppose that Alice is paid $10 per hour but only for the amount of time that she actually works, that David is paid $14 per hour but only for the amount of time that he actually works, and that Mike is paid $7 per hour but also only for the amount of time that he actually works. Suppose also that each chair sold brings a revenue of $130 and has raw materials cost of $60. Assuming that the chair factory is operating at its maximum capacity, what is the profit per hour after paying Alice David, and mike's salaries? d. If everyone could perform all four tasks and therefore the labor is pooled across all activities, what would be the capacity of the process? e. Suppose there is an additional activity after Painting where the chair needs to dry, which takes 10 minutes per chair. Assume there is infinite space for chairs to dry, and it does not require anyone to be there. How does the capacity of the process in steady state change due to this additional step?
Transcribed Image Text:2. Suppose that Alice, David, and Mike are working in a furniture factory, making chairs. The chair- making process consists of four activities: cutting and shaping the wood (5 min/chair), assembling the chair frame (5 min/chair), attaching the seat (10 min/chair), and finally, painting the chair (7 min/chair). Alice is responsible for the wood activity; David is responsible for the frames and painting activities and Mike is responsible for the seat activity. Each person can only do one activity at a time. The process flow diagram looks as below. Wood 5 min/chair Alice Frames 5 min/chair David Seats 10 min/chair Mike Painting 7 min/chair David a. Calculate the capacity of each resource. What is the bottleneck of the process and what is the capacity of the process? b. Calculate the utilization of each resource assuming that the process is operating at maximum capacity. c. Suppose that Alice is paid $10 per hour but only for the amount of time that she actually works, that David is paid $14 per hour but only for the amount of time that he actually works, and that Mike is paid $7 per hour but also only for the amount of time that he actually works. Suppose also that each chair sold brings a revenue of $130 and has raw materials cost of $60. Assuming that the chair factory is operating at its maximum capacity, what is the profit per hour after paying Alice David, and mike's salaries? d. If everyone could perform all four tasks and therefore the labor is pooled across all activities, what would be the capacity of the process? e. Suppose there is an additional activity after Painting where the chair needs to dry, which takes 10 minutes per chair. Assume there is infinite space for chairs to dry, and it does not require anyone to be there. How does the capacity of the process in steady state change due to this additional step?
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