# Answered Essay: Bruno Fruscalzo decided to setup a small production facility in Sydney to sell to the

 Bruno Fruscalzo decided to setup a small production facility in Sydney to sell to the local restaurants who want to offer gelato on their dessert menu. To start simple, he would offer only 3 flavors of gelato: fragola (strawberry), chocolato (chocolate), and bacio (chocolate with hazelnut). After a short time he determined his demand and setup times, as shown in the table below. Fragola Chocolato Bacio Demand (kg/hours) 15 10 5 Setup time (minutes) 35 25 15 Bruno first produces a batch of fragola, then a batch of chocolato, then a batch of bacio and then he repeats that sequence. For example, after producing bacio and before producing fragola, he needs 35 minutes to setup the ice cream machine, but he needs 15 minutes to switch from chocolato to bacio. When running, his ice cream machine produces at the rate of 50 kgs per hour no matter which flavor it is producing (and of course it can produce only one flavor at a time). (Round your answer to 2 decimal places.) a. Suppose they operate with a production cycle of 150 kgs (75 kg of fragola, 50 kgs of chocolato and 25 kgs of bacio). What is the capacity of the gelato making process (in kgs per hr)? 50.00 kgs per hour (Round your answer to 2 decimal places.) b. Suppose they operate with a production cycle of 150 kgs (75 kg of fragola, 50 kgs of chocolato and 25 kgs of bacio). What is the utilization of the gelato making process? 65.20 % (Round your answer to 2 decimal places.) c. Suppose they operate with a production cycle of 150 kgs (75 kg of fragola, 50 kgs of chocolato and 25 kgs of bacio). What is the average inventory of chocolato? 150.00 kgs

 Fragola Chocolato Bacio Demand (kg/hours) 15 10 5 Setup time (minutes) 35 25 15 Setup time (hours) 0.58 0.42 0.25 a. Suppose they operate with a production cycle of 150 kgs (75 kg of fragola, 50 kgs of chocolato and 25 kgs of bacio). What is the capacity of the gelato making process (in kgs per hr)? the capacity of the gelato making process = 50 kgs per hour (as the ice cream machine produces at the rate of 50 kgs per hour no matter which flavor it is producing) b. Suppose they operate with a production cycle of 150 kgs (75 kg of fragola, 50 kgs of chocolato and 25 kgs of bacio). What is the utilization of the gelato making process? Utilization% = (Activity time/Actual time )*100 For a production cycle of 150 kgs. Activity time (excluding the setup time)= 3 hours Actual time taken (activity time + setup time)= 4.25 hours Utilization% = 70.59% c. Suppose they operate with a production cycle of 150 kgs (75 kg of fragola, 50 kgs of chocolato and 25 kgs of bacio). What is the average inventory of chocolato? average Demand for chocolato (kg/hour) 10 In 4.25 hour cycle, 50 kg of Chocolato is produced. Average Chocolato produced per hour 11.76 kgs Inventory remaining =Production-Demand= 1.76 kgs hence, average inventory of Chocolato is 1.76 kgs per hour.

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