Assignment:
1. Choosing the Optimal Batch Size:
For automobile production, we have the following production flow:
For each car, there are 2 different parts that need to be stamped using the same Die Stamping machine. Between each of these 2 different car parts, we have a set-up time of 30 minutes at the Die Stamping.
For one production cycle, this is a total setup time of 30 + 30 = 60 minutes.
As we learned:
Die Stamping: the capacity will depend on the batch size.
Assembly: there is no need for batching, and a car can be assembled in 20 minutes/unit
capacity at Assembly = 1/20 units/min
We learned that the optimal batch size is the smallest batch size that does not constrain the flow rate of the process. What is the flow rate of our process? This is fixed at Assembly at 1/20 units/min.
Here we want our Die Stamping to have a capacity equal to the Assembly Process capacity = 1/20 units per minute.
What is the optimal batch size for Die Stamping?