supply chain management exam
GENES-4-SALE BIOTECH FIRM
G4S is a new startup company that has developed a customized baldness cure based on gene-splicing research done at UT. By taking a sample of hair follicles, G4S is able to use modified RNA and a proprietary bioreactor to produce a hair-growth pill specialized for that individual. The primary limitation is a constraint on the elapsed time from the removal of the hair follicles to the drying stage in the process – if more than 6 hours elapse, the effectiveness of the pill drops from 90% to 40%. The basic layout of the process is as follows:
There are two “Hair removal” workstations, n “Bioreactor” workstations, one “Endomorphic mixing chamber” workstation, one “Dryer” workstation, and one “Emulsification and Packaging” workstation. The equipment, labor, cycle times, and fixed costs on a per-workstation basis are shown below for each stage in the process. All cycle times are given on a per-customer basis. The annual fixed costs are given for the equipment required per workstation. The specified labor rate is the hourly rate per person needed in that stage.
Stage
Equipment per Station
Labor per Station
Cycle Time per Station
Annual $ Fixed Costs per Station
Labor Rate ($/hour)
Hair Removal
Hair plucker
1 nurse
15 min
100,000
20.00
Bioreactor
Bioreactor
2 scientists
2 hours
250,000
30.00
Endomorphic mixing chamber
Specialty chamber
5 techs
12 min
500,000
15.00
Dryer
Bio-dryer
1 tech
6 min
150,000
15.00
Emulsification and packaging
Pill former
4 operators
10 min
750,000
10.00
Assume that at the stated cycle times, all equipment and labor resources are fully utilized. As the realized capacity decreases, resource utilization decreases proportionally.
The variable costs are relatively high at $150/customer due to the high price charged by your supplier of Modified-RNA.
The doors are open 10 hours/day (7:00 am to 5:00 pm) for 250 days/year.
PROCESS PERFORMANCE
Assume there are 8
G4S is a new startup company that has developed a customized baldness cure based on gene-splicing research done at UT. By taking a sample of hair follicles, G4S is able to use modified RNA and a proprietary bioreactor to produce a hair-growth pill specialized for that individual. The primary limitation is a constraint on the elapsed time from the removal of the hair follicles to the drying stage in the process – if more than 6 hours elapse, the effectiveness of the pill drops from 90% to 40%. The basic layout of the process is as follows:
There are two “Hair removal” workstations, n “Bioreactor” workstations, one “Endomorphic mixing chamber” workstation, one “Dryer” workstation, and one “Emulsification and Packaging” workstation. The equipment, labor, cycle times, and fixed costs on a per-workstation basis are shown below for each stage in the process. All cycle times are given on a per-customer basis. The annual fixed costs are given for the equipment required per workstation. The specified labor rate is the hourly rate per person needed in that stage.
Stage
Equipment per Station
Labor per Station
Cycle Time per Station
Annual $ Fixed Costs per Station
Labor Rate ($/hour)
Hair Removal
Hair plucker
1 nurse
15 min
100,000
20.00
Bioreactor
Bioreactor
2 scientists
2 hours
250,000
30.00
Endomorphic mixing chamber
Specialty chamber
5 techs
12 min
500,000
15.00
Dryer
Bio-dryer
1 tech
6 min
150,000
15.00
Emulsification and packaging
Pill former
4 operators
10 min
750,000
10.00
Assume that at the stated cycle times, all equipment and labor resources are fully utilized. As the realized capacity decreases, resource utilization decreases proportionally.
The variable costs are relatively high at $150/customer due to the high price charged by your supplier of Modified-RNA.
The doors are open 10 hours/day (7:00 am to 5:00 pm) for 250 days/year.
PROCESS PERFORMANCE
Assume there are 8