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The table below gives the possible machines to purchase for a workstation. The stations are listed in the order of their operational sequence for production and each station can consist of any number of machines as long as they are of the same type. Each machine’s speed, variability (in terms of SCV of process time), and cost is provided. The desired cycle time is 30 minutes, and the maximum demand is 1000 parts per day where production runs for 15 hours in a day.

(a) Which combination gives the lowest cost, if we only consider maximum demand?

(b) What is the configuration that gives the lowest cost, that meets both the maximum demand and the desired cycle time?

Possible Machines (Speed in Parts/hr., SCV, and Cost in $x 1000) Station Station Type 1 Type 2 Type 3 Type 4 Speed SCVCost Speed SCV Cost Speed |SCV Cost Speed SCVCost 2 110.5 1 150 50 2 65 2 75 MMOD 42 2 50 42 85 10 2 SIP 60 1.5 80 55 1.5 100 60 7 ROBOTI 25 1 100 25 0.7 120 4 HDBLD5 0.5 20 5.5 0.75 22 6 0.75 24

Possible Machines (Speed in Parts/hr., SCV, and Cost in $x 1000) Station Station Type 1 Type 2 Type 3 Type 4 Speed SCVCost Speed SCV Cost Speed |SCV Cost Speed SCVCost 2 110.5 1 150 50 2 65 2 75 MMOD 42 2 50 42 85 10 2 SIP 60 1.5 80 55 1.5 100 60 7 ROBOTI 25 1 100 25 0.7 120 4 HDBLD5 0.5 20 5.5 0.75 22 6 0.75 24

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