BADM 375 Lecture 3: BADM 375 Lecture 3-5

• School: University of Illinois
• Department: Business Administration
• Course: BADM 375
• Professor: Satish

Document Summary

10 people into line = 10/10 = 100% 5 pass/minute (capacity = 3 pass/minute) 5/3. Inventory: flow rate x flow time (throughput revenue) Flow time = average time flow spends in the process. Bottleneck = resource with the lowest capacity & highest implied utilization. # resources / processing time = 2/10 min/unit * 60 min / 1 hour = 120 / 10 = 12 units/hr. Cap = 1 / 6 min/unit * 60 min / 1 hr = 10 units/ hour (bottleneck) Cap = 3/ 16 min/unit x 60 min/1 hr = 11. 25 units/hr. Flow rate = min [ available input, process capacity, demand ] Res 2 = 12/10 = 120% = bottleneck (add 20% excess capacity) Push system: forecast demand make products push it to the market. Pull system: pull demand into the production system pull demand into the factory design/ = 8/10 = 80% (highest utilization, lowest capacity)