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The starting work part costs $2.25 in a batch production operation. Batch quantity = 100 parts. Each cycle, part handling time = 0.50 min, and operation time = 1.67 min. Setup time = 50 min. Equipment cost rate = $35.00/hr, and labor cost rate = $18.00/hr, including overhead costs. There is no tool change or tool cost in the operation. The machine tool is 100% reliable, and the scrap rate = 5%. Determine the number of hours required to complete the batch."

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zainsubhani

Answer:

[tex]T_b=4.667\ hr/batch[/tex]

The number of hours required to complete the batch are 4.667 hr

Step-by-step explanation:

Time for each cycle=[tex]T_c[/tex]= Part handling time + Operation time

Time for each cycle=[tex]T_c[/tex]=0.50+1.67

Time for each cycle=[tex]T_c[/tex]=2.17 min

Since Scrap Rate is 5 %=0.05:

Starting quantity of batch is:

[tex]Q_o=\frac{100}{1-0.05}[/tex]

[tex]Q_o=105.26\ Parts[/tex]

[tex]Q_o[/tex]≅106 Parts

Batch Time can be calculated as:

[tex]T_b=T_c[/tex]*(Starting batch quantity)+Setup Time

[tex]T_b=2.17*106+50\\T_b=280.02\ min/batch\\ T_b=4.667\ hr/batch[/tex]

The number of hours required to complete the batch are 4.667 hr

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