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Business, 30.07.2021 05:00 kamand10

A rule of thumb is that you want your bottleneck at your most expensive resource (if it's a cheap resource don't let it be a bottleneck - buy more of that resource!). The way we calculate the expense of a resource is to take its cost and divide by its capacity. (The idea is that if you can work twice as fast as I can while we both charge the same hourly rate, then you are a cheaper resource - you charge only half as much as I do to complete a job.). Let's say that in the Littlefield game machines cost $90,000, $80,000 and $100,000 at the three stations 1, 2, and 3, respectively, with process times of 6 hours, 2 hours, and 5 hours, respectively. Which is the most expensive resource? Hint: the cost of a resource at station 1 is its cost of $90,000 divided by its capacity of 4 jobs per day, resulting in a cost of $90,000 / (4 jobs per day) = $22,500 per job per day. Similarly, calculate the costs at station 2 and 3 and compare to the $22,500 per job per day.

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