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Operation Managment

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1. An assembly line must produce 480 units every 8-hour workday. There are 10 tasks to complete, with the sum of the task times equal to 4 minutes. If this work is assigned across five workstations, what would the efficiency of the balance be?

2. A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 1,000 units of output each month. However, it has a maximum output capability of 1,250 units per month, and can produce as little as 500 units per month without corporate headquarters shifting production to another plant. If the factory produces 925 units in October, what is the capacity utilization rate in October for this factory?

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Gaurav Agarwal, MS
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  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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