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Operations Management Question

Decent Essays

FALL 2011 2011

Deadline: October 26,

Middle East Technical University – Northern Cyprus Campus

BUS 361 Operations Management

Homework 1 - Solutions

1. Fruit Computer Company manufactures memory chips in lots of ten chips. From past experience, Fruit knows that 80% of all lots contain 10% (1 out of 10) defective chips, 20% of all lots contain 50% (5 out of 10) defective chips. If a good batch (that is, 10% defective) of chips is sent on to the next stage of production, processing costs of $1000 are incurred, and if a bad batch (that is, 50% defective) is sent on to the next stage of production, processing costs of $4000 are incurred. Fruit also has the alternative of reworking a batch at a cost of $1000. A reworked batch is …show more content…



b.

Balance Delay (D) =

b1= 3, b2= 1, b3= 0, b4= 3, b5= 5, b6= 8

̅ = 20/6 = 3.33,

Workload Imbalance (B) = √

c. Lower bound on number of workstations =

[

]

[∑

] =[

]

LB[D] = 0,

LB[B] =0.

None of the lower bounds are equal to the obtained objective values (K*, D, B). Thus, we do not know whether the solution obtained by RPW heuristic is optimal or not.

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