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Extra Problem #1
Question 1
A small toy manufacturer produces toy castles to go with their popular line of Action Masters action
figures. At final assembly, each castle is made by fitted 2 bottom pieces together and then topping that
with 3 top pieces. Their production process is diagrammed below. Each Step (A, B, C, and D) consists
of a single machine, and the average production rates are included. Note that the machine at Step A is
used to make both the top and bottom pieces (with the production rates for making each type given),
and assume that no setup time is incurred when switched between making the bottom and top pieces.

B
Top 3

500 parts/hr

A D
Bottom
2
Top: 500 parts/hr Final Assembly: 150 per hour
Bottom: 350 parts/hr
C

200 parts/hr

Calculate the overall capacity of this system and identify the bottleneck.

Question 2
The PC academy offers training classes for software. A course consists of five 3-hour sessions
offered as either a set of morning sessions (9 AM - 12 Noon) or a set of afternoon sessions (1 PM
- 4 PM), Monday through Friday. An instructor is capable of teaching only a single course at a
time; instructors use the other part of each day preparing material and reviewing student work.
There are 10 instructors. There are 4 rooms available, each of which can hold 30 students.

a) Assuming the schedule stays the same, what is the capacity of the system (in students/week)?
What is the bottleneck resource?
b) If the company starts offering classes in the evening (6 PM - 9 PM), what is the capacity of
the system (in students/week)?

Question 3
The Irvine Villa is an upscale independent hotel that caters to both business and leisure travelers.
On average, one-third of the guests checking in each day are leisure travelers. Leisure travelers
generally stay for 3.6 nights twice as long as the average business customers. On an average
day, 135 guests check into The Irvine Villa.

a) On average, how many guests of each type are on the hotel on any given day?
b) The average business travelers pay a rate of $250 per night, while the leisure travelers pay an
average rate of $210 per night. What is the average revenue the Irvine Villa receives per
night per occupied room?

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Question 4
Consider a line process with 3 processing stages. The production requires each unit to go through
Stage A through Stage C in sequence. The characteristics of the Stages are given below:

Stage A B C
Unit processing time (minutes) 1 2 3
Number of machines 1 1 1
Machine availability 90% 100% 100%
Process yield at stage 80% 50% 50%

Defective units produced at each stage will be scrapped before passing onto the next stage.

a) Determine the capacity of the process (in good units per hour). Which stage is the
bottleneck?

b) Describe the impact on process capacity (increase, decrease, or no change) for each of the
following scenarios:

Scenarios Impact on Process Capacity

Increase process yield in Stage A
Increase process yield in Stage B
Increase process yield in Stage C
Add one machine in Stage A
Add one machine in Stage B
Reduce processing time in Stage C