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Canon produces digital and film (35 mm) cameras.

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1. Canon produces digital and film (35 mm) cameras. For the purposes of the question, let's assume they are producing one model of each. Canon produces its cameras as much as demanded, and the ratio of demand for digital cameras is 4 times of the demand for the film cameras. The flow time for digital cameras is 5 hours and the flow time for film cameras is 6 hours.
a. What is the average flow time for Canon?
If the total inventory they have is 10,400:
b. What is the total demand for Canon cameras?
c. If digital cameras sell for $300 on average, and if the film cameras sell for $200 on average, what is Canon's expected revenue?

2. What is the relationship between flow time efficiency and capacity utilization?

3. What is the main purpose of using batches in production?

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1. Canon produces digital and film (35 mm) cameras. For the purposes of the question, let's assume they are producing one model of each. Canon produces its cameras as much as demanded, and the ratio of demand for digital cameras is 4 times of the demand for the film cameras. The flow time for digital cameras is 5 hours and the flow time for film cameras is 6 hours.
a. What is the average flow time for Canon?
Let the demand of film be X

Therefore demand for ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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