Question

Which of the following statements is TRUE regarding utilization in a process with setups?

When batch size increases, the utilization of the bottleneck resource with setups will decrease.

When batch size increases, the utilization of the bottleneck resource without setups will increase.

When batch size increases, the utilization of the bottleneck resource without setups will decrease.

When batch size increases, the utilization of the bottleneck resource with setups will increase.

Answer 1

When batch size increases, the utilization of the bottleneck resource with setups will increase.

When the batch size increases, concerns with the limited resources at the area where there is a bottleneck in the entire process, is high. This is so because the bottleneck has the ability to stall the entire production process owing to its limited capacity of resources that can otherwise facilitate the higher production when the batch sizes increase. This shall invariably lead to higher setup costs so that that the attempts could be made to push such bottlenecks at the end of the batch processes. When there is a buffer stock available in hand, the wastage in the setups, however, could be dealt with but it is to be noted that when the batch size increases, attempts are made to optimize the setups with the utility of the bottleneck resource. Hence the last option only stand true while in other cases, the utilization of bottleneck resources either do not involve the setups or even if it involves, it says that it shall decrease the setups, which is untrue.