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Consider the following two---step manufacturing line. Step A has a processing time of 1 minute per unit, but no setup is required. Step B has processing time of 0.1 minute per unit, but a setup time of 9 minutes is required per batch.

(a) Supose units are produced in batches of 12 (i.e., after each set of 12 units are produced Step B must incur a setup of 9 minutes). What is the capacity of the manufacturing line. (in units per minute)?

(b) What batch size would you recommend so that there is minimum inventory? Assume there is ample demand.

Operation Management, Management Studies

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