Natural Blends Inc

Natural Blends Inc.
(Part A)

Questions – Part A
Assume that the production system was running only one size of oranges. Consider just steps two through four :

Extraction

Filtration

Concentration

Extraction Process : -Time Setup = 20min -Capacity = 20,000lbs/hr

Filtration Process : - Operation time = 90min -Filter Change = 30min -Capacity = 20,000lbs/hr

Concentration Process : -Capacity = 18,000lbs/hr

Question 1a :
How much orange juice concentrate can be produced in one 8-hour workday?
Since we have bottleneck on process 3 (Filtration – with lowest production capacity in total 8hrs) then all process should be following process number 3 with downtime 30min for filter change. So we only can get maximum output from Concentration process is 108,000 lbs = (4 x (18,000+9,000)) = 108,000 lbs

Question 1b :
Assume extraction had previously been setup for the size oranges being processed. How much idle time will there be in the extraction operation during one 8-hour workday?
Process 2 (extraction) should wait and follow the operation time of Process 3 since it should be shutting down for 30min for filter change after operate 90min. Then during 8hr, process 2 have 4 idle times (=8hrs/2hrs) Idle time = 4 x 30min = 120min / 2hrs

Question 2a :
If you could add storage capacity somewhere between steps two and four in this production line in order to increase daily output, where would you place it? How much storage would you add?
We will put 1 storage between process 3 (filtration) and process 4 (concentration) with capacity 3000lbs to accommodate the output from process 3 since the production time and speed is not the same between process 3 and 4.

Question 2b :
Why?

Process 3 after operate for 90min, it can produce 30,000 lbs of orange juice (20,000 lbs/hr) but the process 4 only have production capacity 18,000 lbs/hr and for 90min operation it only can proceed 27,000 lbs meanwhile the total output from process 3 are 30,000 lbs.