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A product needs to be processed on both Resource X and Resource Y. There is only one of each of these resources and your goal is to meet market demand, which is 20 units per day and a day has 12 hours of working time. It takes 30 minutes to process a unit on Resource X and 15 minutes on Resource Y. If Resource X feeds Resource Y and both resources are scheduled to work 12 hours per day and process items just-in-case, then which Of the following statement is correct:

a. There would be no accumulation of work-in-process inventory.
b. Work-in-process inventory would accumulate in-front-of Resource Y.
c. There would be no accumulation of finished goods inventory.

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anthougo

Answer:

The correct statement is:

a. There would be no accumulation of work-in-process inventory.

Explanation:

Daily demand of product A = 20 units

Working time per day = 12 hours

Time to process a unit on Resource X = 30 minutes

Time to process a unit on Resource Y = 15 minutes

Total units that can be processed on Resource X per day = 24 (12/0.5)

Total units that can be processed on Resource Y per day = 48 (12/0.25)

Since Resource X feeds Resource Y and both resources are scheduled to work 12 hours per day, there will no accumulation of work-in-process (from Resource X) because Resource Y uses half the time of Resource X.