It takes 9 mins packaging time/unit for a packaging machine. The annual demand forecast is 50000 units and an operator is working in 8-hour shift all week days throughout the year. The operator is paid @ Rs. 700 per day. The plant manager has planned a 15% cushion and the plant works for only one shift per day. a. How many packaging machines are needed? b. What will be the production rate per day if the packaging process happens in batches of 200 and it takes 1 hour for setup?

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
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It takes 9 mins packaging time/unit for a packaging machine. The annual demand forecast is 50000 units and an operator is working in 8-hour shift all week days throughout the year. The operator is paid @ Rs. 700 per day. The plant manager has planned a 15% cushion and the plant works for only one shift per day.

a. How many packaging machines are needed?

b. What will be the production rate per day if the packaging process happens in batches of 200 and it takes 1 hour for setup?

c. End of the day, 50 packed units are shipped to a retail shop and the holding cost per unit in the plant is Rs.15. What should be the economic lot size?

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