Calculate the process capacity in units per day


Problem:

The process for manufacturing jackets at Carhartt consists of three stations: (1) receiving materials; (2) fabrication; and (3) quality inspection and shipping. Processing information for each station is provided in the following table. Station 1) Receiving 2) Fabrication 3) Quality Inspection & Shipping Processing Time (min) per unit 18 16 5 # Workers 7 9 5 Key process parameters: The production process operates for 9 hours per day. Fixed operating costs not including wages are $221 per day. All workers are paid $16 per hour. Customer demand for finished apparel is 390 units per day. The net revenue (less variable cost of materials) per unit is $31. Identify the bottleneck station and calculate the process capacity in units/day. Enter the process capacity in units/day. Round your answer to one decimal place.

 

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Other Subject: Calculate the process capacity in units per day
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