Capacity Questions (1)

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George Brown College Canada *

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Industrial Engineering

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Dec 6, 2023

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Capacity Questions Example of One Setup Time Medical Solutions Inc. has the following claims (demand) it must complete in the next 40 hour work week. The jobs are as follows: Claim Type Number of Claims to Process Setup Time per Claim Type (changeover time) Processing time per claim (in hours) Cancer Treatment 18 3 hours 0.9 Spinal Injury 12 1 hour 1.6 Hip Replacement 9 2 hours 0.7 Given the capacity of 40 hours of work, can the workload as shown above be completed this week? Equation for Capacity Capacity required = set up time + [processing time x order size] Example of Setup Time for Every Client Cool Kids ‘R’ Us is a hair dressing salon for small children. They provide 3 services – cutting, dying and gum removal. On average, the numbers of clients are as follows: Hair Dressing Service Number of customers Setup Time per Service Type (changeover time) Processing time per service Cutting 5 0.25 hours 0.75 hours Dying 2 0.25 hours 1.5 hours Gum Removal 4 0.5 hours 0.5 hours Given the capacity of 40 hours of work, can the hair services as shown above be completed in one 9 hour day? Equation for Capacity Capacity required = [set up time + processing time] x order size
Revenue and Capacity Question Part A You have the opportunity for the summer to own and operate your own hot dog stand on Canadore College property from May 1 to August 31st. You are the owner and sole employee. There are 31 days in May, 30 days in June, 31 days in July and 31 days in August. You sell the hotdogs for $3 each and the capacity of your cart is 50 hotdogs per day. . Calculate the total revenue for the hot dog cart for the summer. Part B Each hot dog costs you $1 in variable costs, and the total fixed cost per day is $40. If you run out, you can run back and get supplies but it will cost you 2 hours of operating time
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