EP 208 Operations Management Fall 2017/So

Solution to Extra Problem #1

Question 1
1
426.83 parts/hr 426.83 85.37 castles/hr

Step A:
3 1 2 1 5
5 500 5 350
Step B: 500/3 = 166.7 per hour
Step C: 200/2 = 100 per hour

So, overall system capacity is 85.37 castles/hour, and bottleneck is Step A

Question 2
a) The resources here are classrooms and teachers. There are 4 classrooms available in the
morning and 4 in the afternoon, so that a total of 8 courses could potentially be run in one
week. There are ten teachers, so we can staff all 8 courses. Each course will process
30 students during the week, so the capacity is
8 courses per week x 30 students per course = 240 students/week

Classroom availability is the bottleneck because there are only 8 classroom slots and 10
teachers, hence classroom availability is limiting the throughput.
b) There are now 12 courses that could be run in a week, given classroom availability;
however, there are only 10 teachers available. The bottleneck shifts to the teachers, so
our capacity is
10 teachers x 1 course/teacher x 30 students/course/week = 300 students/week

Question 3
a) For Leisure Travelers:
RL = 135 1/3 = 45 guests/night and TL = 3.6 nights IL = RL TL = 453.6 = 162

For Business Travelers:

RL = 135 2/3 = 90 guests/night and TL = 1.8 nights IL = RL TL = 90 1.8 = 162

b) On average, the hotel has equal number of leisure and business travelers (162 vs. 162).
So, the average revenue per occupied room = * 250 + * 210 = $230

Question 4
a. Stage A capacity: (60*90%/1)*80%=43.2 units/hour
Stage B capacity (60*100*/2)*50%= 15 units/hours
Stage C capacity (60*100%/3)*50%=10 units/hours (if B supplies 20 units/hours)

Process capacity =15 units (due to Stage B)*50% (due to Stage C) = 7.5 units/hours
Stage B is the bottleneck.
b.
Scenarios Impact on Process Capacity
Increase process yield in Stage A No Change
Increase process yield in Stage B Increase
Increase process yield in Stage C Increase
Add one machine in Stage A No Change
Add one machine in Stage B Increase
Reduce processing time in Stage C No Change