Consider a production system consisting of 2 resources M1 and M2. These resources are used to manufacture
Consider a production system consisting of 2 resources M1 and M2. These resources are used to manufacture two different products A and B. Product A requires a standard time of 4 minutes on resource M1 and 3 minutes on resource M2. Product B requires a standard time of 2 minutes on resource M1 and 8 minutes on resource M2. Assume that the resources are operated for 8 hours per day and that each resource requires a setup time of half an hour every day. a. Assume that the daily demand for A is 90 units and the daily demand for B is 60 units. Can the daily demand be met by the current resources? b. Assume that the firm would like to maximize its flow rate while maintaining a daily production mix of 3A’s for 2B’s. What is the bottleneck resource? What is the maximum flow rate? c. What would be the flow rate if the capacity of resource 2 were doubled?