Duckstein, Inc., manufactures two types of aspirin: plain and buffered. It sells all it produces.

Recently, Duckstein implemented a TOC approach for its Fort Smith plant. One binding constraint was identified, and the optimal product mix was determined. The diagram on the following page reflects the TOC outcome:

Required:

1. What is the daily production rate? Which process sets this rate?

2. How many days of buffer inventory is Duckstein carrying? How is this time buffer determined?

3. Explain what the letters A, B, and C in the exhibit represent. Discuss each of their roles in the TOC system.

Transcribed Image Text:

A Materials for 2,000 bottles per day Plain aspirin: 1,500; Buffered aspirin: 500 Mixing Process B 750 units 250 units Plain aspirin Buffered aspirin C Tableting Process Bottling Process Finished Goods 1,500 bottles of plain aspirin per day 500 bottles of buffered aspirin per day