Why does this formula not function?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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a. Customers are unhappy because they have to
wait long periods to obtain a Furniture-A. The
company comes to Doshisha Business School
and hires you as a part-time consultant to
improve the process capacity of producing
items of Furniture-A. You cannot hire more
workers because the current 10 workers are
specialists with long-year experiences. It is
difficult to find additional workers with those
high skills. To match TJ with assembly process,
you use the following "batch size formula" you
learnt from Professor Yin's course to decide the
appropriate batch size for C-I and C-II.
But you are surprised that the answer is
a negative number of -6.42857, gotten
by (10/10 * 45)/(1-10/10 *8).
Why does this formula not function?
Transcribed Image Text:a. Customers are unhappy because they have to wait long periods to obtain a Furniture-A. The company comes to Doshisha Business School and hires you as a part-time consultant to improve the process capacity of producing items of Furniture-A. You cannot hire more workers because the current 10 workers are specialists with long-year experiences. It is difficult to find additional workers with those high skills. To match TJ with assembly process, you use the following "batch size formula" you learnt from Professor Yin's course to decide the appropriate batch size for C-I and C-II. But you are surprised that the answer is a negative number of -6.42857, gotten by (10/10 * 45)/(1-10/10 *8). Why does this formula not function?
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