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Business, 30.07.2021 01:40 yorylee

Consider a production line with three single-machine stations in series. Each has processing times with mean 2 hours and standard deviation of 2 hours. Required:
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 $0.50 per piece per hour. Find the profits for the above push and pull systems.

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