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Wally’s Widget Warehouse takes orders from 7 a.m. to 7 p.m. The manager wants to analyze the process and has provided the process flow diagram shown below. There are three steps required to ship a customer order. The first step is to take the order from a customer. The second step is to pick the order for the customer, and then they have to pack the order ready for shipping. Wally promises that every order placed today gets shipped tomorrow. That means that the picking and packing operations must finish all orders before they go home.

Wally wants to figure out the following.

a. What is the current maximum output of the process assuming that no one works overtime?

b. How long will the picking and packing operations have to work if we have a day where the order taker works at his maximum capacity?

c. Given b, what is the maximum number of orders waiting to be picked?

d. Given b, what is the maximum number of orders waiting to be packed?

e. If we double the packing capacity (from 60 to 120 orders per hour), what impact does this have on your answers in parts (b), (c), and (d)?

Short Answer

Expert verified

Shipping is the physical movement of goods from one location to the other, such as from the storage to the client.

Step by step solution

01

Manufacturing

Manufacturing is the activity of making items using labor, equipment, equipment, as well as biological and chemical treatment as well as composition. Manufacturing can refer to either the large-scale conversion of raw materials into finished goods or the creation of more complicated objects via the sale of basic commodities to producers for the manufacturing of products including cars, airplanes, as well as residential gadgets

02

The current maximum output of the process assuming that no one works overtime

Processingcapacityoftakingorder=100customer/hourTotalhoursofoperationoftakingorders=12hours°Õ´Ç³Ù²¹±ô°ä²¹±è²¹³¦¾±³Ù²â´Ç´Ú³Ù²¹°ì¾±²Ô²µ´Ç°ù»å±ð°ù²õ±è±ð°ù»å²¹²â=100³¦³Ü²õ³Ù´Ç³¾±ð°ù²õ/³ó´Ç³Ü°ù×12³ó´Ç³Ü°ù²õ/»å²¹²âTotalCapacityoftakingordersperday=1200customersperday

ProcessingCapacityofpickingorders=60customers/hourTotalhoursofoperationsofpickingorders=24hours°Õ´Ç³Ù²¹±ô°ä²¹±è²¹³¦¾±³Ù²â´Ç´Ú±è¾±³¦°ì¾±²Ô²µ´Ç°ù»å±ð°ù²õ±è±ð°ù»å²¹²â=80³¦³Ü²õ³Ù´Ç³¾±ð°ù²õ/³ó´Ç³Ü°ù²õ×24³ó´Ç³Ü°ù²õ/»å²¹²âTotalCapacityoftakingordersperday=1440customersperday

ProcessingCapacityofpickingorders=80customers/hourTotalhoursofoperationsofpickingorders=24hours°Õ´Ç³Ù²¹±ô°ä²¹±è²¹³¦¾±³Ù²â´Ç´Ú±è¾±³¦°ì¾±²Ô²µ´Ç°ù»å±ð°ù²õ±è±ð°ù»å²¹²â=80³¦³Ü²õ³Ù´Ç³¾±ð°ù²õ/³ó´Ç³Ü°ù²õ×24³ó´Ç³Ü°ù²õ/»å²¹²âTotalCapacityoftakingordersperday=1920customersperday

The maximum output of the process is determined by the bottleneck. A bottleneck activity is an activity that has the least processing capacity per day.

Here, the activity of taking orders has the least processing capacity of 1200 customers per day.

Hence, taking orders is the bottleneck in the process.

Themaximumoutputoftheprocessinaday=ProcesssingcapacityofthebottleneckThemaximumoutputoftheprocessinaday=1200customers

03

(b) The long will the picking and packing operations have to work if we have a day where the order taker works at his maximum capacity

Maximumoutput=1200customersperdayTofulfilltheseorders,Timeforoperations=Maximumoutput/ProcessingcapacityperhourForpickingactivity,Timeoperations=Maximumoutput/processingcapacityperhourTimeforoperations=1200/80Timeforoperationsforpicking=15hoursForpackingactivity,Timeforoperations=Maximumoutput/ProcessingcapacityperhourTimeforoperations=1200/60TimeforoperationsforPacking=20hours

Step 3: (c) Given b, the maximum number of orders waiting to be picked

Maximum number of orders waiting to be picked = (Processing capacity per hour for taking orders - Processing capacity per hour for picking) x number of hours of operations for taking orders

The concept here is that every hour 100 orders are taken but only 80 are picked every hour and such a gap will continue to widen till the orders are continued to be taken which is the total hours of operations for taking orders beyond which the inflow of orders will be 0.

Hence, the order waiting to be picked will increase every hour by the amount = difference in processing capacity and it will be maximum at the end of 12 hours (operations time for taking orders) and after that, the pending orders will be picked such that the pending orders will go on reducing and become 0 at the end of operations time for picking.

Maximum number of orders waiting to be picked = (Processing capacity per hour for taking orders - Processing capacity per hour for picking) x number of hours of operations for taking orders

Maximum number of orders waiting to be picked = (100 - 80) x 12

Maximum number of orders waiting to be picked = 240

04

(d) Given b, the maximum number of orders waiting to be packed

Similarly,

Maximum number of orders waiting to be packed = (Processing capacity per hour for picking - Processing capacity per hour for packing) x number of hours of operations for picking

05

(e) If we double the packing capacity (from 60 to 120 orders per hour), the impact does this have on your answers in parts (b), (c), and (d)

With the packing capacity of 120 orders per hour,

Forpackingactivity,Timeforoperations=Maximumoutput/ProcessingcapacityperhourTimeforoperations=1200/120TimeforoperationsforPacking=10hours

Because the packing operations time is less than the picking operations time, the packing activity has to wait for the picking activity to complete the work so that the packing activity can pack the picked orders.

Hence,

ActualTimeforoperationsforpacking=TimeforoperationsforpickingActualTimeforoperationsforPacking=15hours

Part C:

Remains unchanged as it will not be affected by the change in the processing capacity for picking operation.

Maximum number of orders waiting to be picked = 240

Maximum number of orders waiting to be packed = (Processing capacity per hour for picking - Processing capacity per hour for packing) x number of hours of operations for picking

Maximum number of orders waiting to be packed = (80 - 120) x 15

Maximum number of orders waiting to be packed = 0

Because the processing capacity per hour for packing operation is more than the processing capacity of picking operation, all the orders that are picked and ready to be packed will be packed without any waiting time.

Hence, the number of orders waiting to be packed at any time = 0

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