Capacity Questions (1)
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School
George Brown College Canada *
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Course
1137
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
docx
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2
Uploaded by AgentOwl52
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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