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Consider a production line with three single-machine stations in series. Each has processing times with mean two hours and standard deviation of two hours.

a) Suppose we run this line as a push system and release jobs into it at a rate of 0.40 per hour with arrival variability given by Ca = 1. What is the average WIP in the line?

b) Compute the throughput of this line if it is run as a CONWIP line with a WIP level equal to your answer in (a). Is the throughput higher or lower than 0.4? Explain this result.

c) Suppose the marginal profit is $100 per piece and the cost of WIP is $0.5 per piece per hour. Find the profits for the above push and pull systems.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92284183

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