hw2

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New York University *

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MISC

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Industrial Engineering

Date

Jan 9, 2024

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docx

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3

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1) The objective to maximize profits will be difficult to use at the plant level because at plant level the main objective is to produce products that are required at the right time and also maintaining the quality standards and the objective of maximizing profits are more toward the corporate objective than the plant objective. The plant can focus more on minimizing the unit cost as that can also improve profits. The disadvantage of is that there will be a tradeoff between throughput, cost and assets. 2)The Fundamental Objective of the firm is to Maximize the wealth and well-being of the stakeholders over the long term so with the component’s revenue, operating expenses and assets the company should generate profit and get their RIO. To that to happen the firm should focus on increasing their revenue and minimize their operating costs and try to minimize the liquidation of their assets Minimizing the cost of production will increase the profit and this objective of the plant is related to the firms objective. 1) A)for station 1 Units :            1 ,2 ,3, 4 ,5, 6 probabilities :   1/6 for station 2 units :             3, 4 probabilities :  1/2   1/2 Capacity of station 1= ( 1/6 * 1 ) + ( 1/6 *2 ) + ( 1/6 *3) + (1/6 *4) + (1/6*5) + (1/6*6 )                                 =  3.5   Capacity of station 2 = ( 1/2 * 3 ) + ( 1/2 * 4 )                                   = 3.5  both stations have the same capacity B) Expected throughput of the line = Min( capacity of station 1 , capacity of station 2 ) = 3.5  ( It does not differ from a )
C) When an additional identical machine is added to both stations the expected throughput of the line will be doubled i.e. expected throughput = ( 3.5 ) * 2 = 7 2) Punching actual output = Both punching and the binding output + punching output = 8,000 + 5,000 = 13,000 pages per hour But the punching machine process to 15,000 pages per hour the utilization rate of punching is = 13,000 ÷ 15,000 = 0.867 pages per hour for binding The actual output is 8,000 pages per hour Binder processing to 10,000 pages per hour So, the utilization rate is = 8,000 ÷ 10,000 = 0.8 pages per hour As we can see that the utilization rate of punching is higher that results the bottleneck’ 3) A. The best case Station 2 is the best case with maximum units. The WIP: Wo=rb×To To=15+30+3 =48/60hours=0.8hours rb=21.6units/hour Wo=21.6×0.8hours=17.28units B. The practical worst-case.
The worst case is station 3 with the lowest capacity and the numbers of machines. The WIP: Wo=rb×ToTo=15+30+3 =48/60hours =0.8hours rb=18units/hour Wo=18×0.8hours=14.4units If the cycle time at the critical WIP is 100 minutes, where does the performance fall relative to the three cases? Is there much room for improvement? lWo=rb×To To=100=100/60hours=1.66hours Station1=3.6 1.66=5.976units Station2=1.8 1.66=2.988units Station3=18 1.66=29.88units The increase in total time will increase the WIP capacity for all three stations.
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