Question

The setup time for a batch of 250 products is 30 minutes while the production time is 5 minutes for each product. If the batch size goes up to 400, what will be the effect on product manufacturing time?

a. Increase by 0.04 minutes
b. Decrease by 0.055 minutes
c. Increase by 0.02 minutes
d. Decrease by 0.045 minutes

Answer 1

Answer:

d. Decrease by 0.045 minutes

Explanation:

First Case  

Time per unit for 250 batch size = (30 / 250) + 5 minutes

Time per unit for 250 batch size = 5.12 minutes

Second case

Time per unit for 250 batch size = (30 / 400) + 5 minutes

Time per unit for 250 batch size = 5.075 minutes

The decrease in manufacturing time = Old-time - New time  = 5.12 - 5.075  =  0.045 minutes . So, it Decrease by 0.045 minutes