Highlights
Question 1
Question 2 An assembly line consists of 11 tasks. The Table below lists the tasks together with the time required to complete each task.
The current assembly line is set up as given below:
Question 3
HomeArt, an art printing company, produces high-quality poster-prints of impressionism paintings. As customers only want perfect prints, quality control is essential for the company. Last month, the company hired a fresh graduate to evaluate the quality in its production line. Over a period of 20 days, the person collected a sample of 50 poster-prints per day and checked the number of defected posters. The Table below shows the result of this data collection:
Question 4
A bicycle assembly line produces 200 bicycles per day. Production of each bicycle costs $300. On average, 90% of bicycles produced are in good condition, but 10% are defective. Only half of the defective bicycles are fixable, and reworking each of such bicycles costs $100.
Question 5
A couple of young entrepreneurs have designed a unique BooKoffee table (which combines features of coffee and reading tables). They are considering taking their design to production. They will sell each table for $120, but they have not yet estimated how many of these tables they will be able to sell, so they do not know their exact production volume. As for their production system, they have two options: A) semi-automatic production where some tasks are perfumed automatic and some manual, B) manual production where all tasks are performed manually by working staff. Option A requires a total fixed cost of $300,000 for installation, while Option B only requires $50,000. With Option A, each table will cost $40 to produce, but with Option B, each table will cost $75. Which Option they should choose?
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