# supply chain questions

Anonymous

Question description

Problem 3: Theory of Constraints

The manufacturing company you work for has a four step assembly process shown in the flow diagram below.

process 1 capacity=90 units/hour > process 2 capacity=60 units/hour > process 3 capacity=80 units/hour process 4 capacity=70 units/hour

a)  What is the maximum output this assembly process could produce in 8 hours?

b)  If the capacity of Process 4 is increased to 90 units/hour, how many units can be assembled in 8 hours?

c)  If the capacity of Process 2 is increased to 80 units/hour, how many units can be assembled in 8 hours?

Productivity and Productivity Growth

Wells Fargo Bank employs three loan officers, each working eight hours per day. Each officer processes an average of five loans per day. The bank’s payroll cost for the officers is \$820 per day, and there is a daily overhead expense of \$500.

a)  What was the labor productivity (in loans per labor hour) for the bank?

b)  What was the capital productivity (in loans per dollar cost) for the bank?

For parts c through e, the bank is considering the purchase of a new computer system for the loan officers.  The software will enable each loan officer to process eight loads per day, but daily overhead expenses will increase to \$550.

c)  What is the new labor productivity (in loans per labor hour) for the bank?

d)  What is the new capital productivity (in loans per dollar cost) for the bank?

e)  What is the capital productivity growth if the software is purchased?

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