1. A machine has a setup time of 150 minutes and run time of 0.0075 minutes per piece. Order sizes are typically 10,000 pieces. After a batch is processed, the process has to be stopped and the machine has to be setup before the next batch can be processed. Assume that a day consists of two shifts and each shift is 450 minutes long.

Find the capacity in pieces per day for this machine under the following assumptions:

(i) A batch can consist of only one order; it cannot have other orders in it. (8 pts)

(ii) Three orders are combined to form a batch. (8 pts)

(iii) All orders can be combined into one batch. (8 pts)

(iv) What is the percent change in capacity as you go from (i) to (ii) to (iii)? (6 pts)

2. A particular operation may be performed by two kinds of process. Process A requires a setup time of 40 minutes, whereas Process B requires a setup time of 180 minutes. On the other hand, the per unit run times are: 0.015 minutes on A and 0.0023 minutes on B. Which batch sizes would you route to A and which ones to B?