AAM time for each activity is given as Sollows Assume demand is unlimited. What
ID: 355838 • Letter: A
Question
AAM time for each activity is given as Sollows Assume demand is unlimited. What is the total idle time? A) 97 seconds B) 143 seconds C) 60 seconds D) 35.75 seconds 2) The weckly output of a fabrication process is shown below, together with data for labor and material inputs. Standard selling price is $125 per unit. Overhead is charged weekly at the rate of $1,500 plus 5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16. Material cost is $10 per foot. What is the average multifactor A) 1.457 B 1.431 C) 1463 will the utilization of a bottleneck resource be less than 100%? 3) When A) When demand is higher than process capacity B) When the process is capacity constrained C) When demand is equal to process capacity D) When the each perform one of the four activities in serving a 4) Four employees at a fast-food customer, take order, time for each activity is given as follows process order, and deliver order. The Activity Assume demand is unlimited. If each employee is paid $7.50 per hour, what is the cost of direct labor assExplanation / Answer
1.
Calculation of Idle Time:
Idle Time = Cycle Time – Process Time
Cycle Time = (1/Flow Rate)
Cycle Time = 1/Min(1/2, 1/30, 1/60, 1/5) = 60 Seconds
Idle Time = (60-2)+(60-30)+(60-60)+(60-5)
Idle time = 143 Seconds …Answer
Hence B is the correct answer
2.
Calculation of Average Multifactor Productivity
Week 1 = [(392 x 125)/(5 x 40 x 16) + (2720 x 10) + (0.5 x 5 x 40 x 16) + 1500]
= 49000/33500
= 1.463
Week 2 = [(408 x 125)/(6 x 40 x 16) + (2790 x 10) + (0.5 x 6 x 40 x 16) + 1500]
= 51000/35160
= 1.451
Avg = (1.463+1.451)/2
Avg = 1.457 …………..Answer
Hence A is the correct answer
3.
Answer D
It is a known fact that utilization of bottle neck resource is lesser than 100% when Process is demand constraint.
4.
Assuming 1 product is processed every minute, hence there will be 60 orders to be processed per minute.
Further the orders are managed by 4 employees; hence there will be flow of:
60/4 = 15
Further,
Costs of Labor = Wages per unit of time/Flow rate
= 7.5/15
= 0.5 ……….Answer