Variability: You need to make 7 units of a product in 1 day. If you make more than 7 units, you must pay a carrying cost of $1 per extra unit. If you make less than 7 units, you must pay a penalty cost of $10 per unit. You can make the product in one of two workstations (you cannot use both). The first station (W1) contains a single machine capable of making 7 units per day, on average. The second station (W2) contains 2 machines, each capable of making 3.5 units per day, on average. Which workstation would be recommend using W1 or W2? Why? [If you need variability information, assume that the output of W1 will be equal to 2 times the roll of a single six-sided die (with sides 1, 2, 3, 4, 5, 6). The output of W2 will be equal to the sum of rolling the die 2 times.]
Variability: You need to make 7 units of a product in 1 day. If you make more than 7 units, you must pay a carrying cost of $1 per extra unit. If you make less than 7 units, you must pay a penalty cost of $10 per unit. You can make the product in one of two workstations (you cannot use both). The first station (W1) contains a single machine capable of making 7 units per day, on average. The second station (W2) contains 2 machines, each capable of making 3.5 units per day, on average. Which workstation would be recommend using W1 or W2? Why? [If you need variability information, assume that the output of W1 will be equal to 2 times the roll of a single six-sided die (with sides 1, 2, 3, 4, 5, 6). The output of W2 will be equal to the sum of rolling the die 2 times.]
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
