Mango Electronics Inc. is a Fortune 500 company that develops and markets innovative consumer electronics products. The development process proceeds as follows. Mango researches new technologies to...

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Mango Electronics Inc. is a Fortune 500 company that develops and markets innovative consumer electronics products. The development process proceeds as follows.
Mango researches new technologies to address unmet market needs. Patents are filed for products that have the requisite market potential. Patents are granted for a period of 20 years starting from the date of issue. After receiving a patent, the patented technologies are then developed into marketable products at four independent development centers. Each product is only developed at one center. Each center has all the requisite skills to bring any of the products to market. However, any single center has the capacity to only work at one patent at a time. It is assumed that development centers take on development patents on a first-come first-serve basis.
Mango is granted a patent every 7 months on average with standard deviation of 7 months. The average development process lasts 25 months with standard deviation of 50 months.

Q2.1 - What is the utilization of Mango’s development facilities?

Answered Same DayDec 20, 2021

Solution

David answered on Dec 20 2021
3 Votes
1. Long-term averages
The Merger and Acquisition department of a global bank has been experiencing a very stable workload
over the last few years. On average, the department completes 75 deals per year with an average deal
completion time of 1.8 months.
Q1.1 - How many deals on average are active at any point in time?
Q1.1 - How many deals on
average are active at any
point in time? Deals:
11.25

Throughput = 75 deals per year = 6.25 deals per month
Flow time= 1.8 months
Work in process inventory = 6.25* 1.8 = 11.25 deals.
2. Capacity and Queues
Mango Electronics Inc. is a Fortune 500 company that develops and markets innovative
consumer electronics products. The development process proceeds as follows.
Mango researches new technologies to address unmet market needs. Patents are filed for
products that have the requisite market potential. Patents are granted for a period of 20 years
starting from the date of issue. After receiving a patent, the patented technologies are then
developed into marketable products at four independent development centers. Each product is
only developed at one center. Each center has all the requisite skills to...
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