Congratulations, you own a job shop manufacturing company. Your company has been requested to quote on a simple assembly: a special-size metal door for McCall Enterprises. The door assembly consists of the door, the frame, two hinges, and a latch. The door must go to shop 5 for 1 hour and then to shop 9 for 2 hours. The frame must go to shop 2 for 0.5 hour and then to shop 6 for 1 hour. After the above processing, both the door and the doorframe must go to the paint shop for 1 hour of labor and 4 hours of drying time. Next the components must go for | hour to assembly, where the hinges and latch are installed and a pasteboard protective crate is strapped around the assembly.

Raw material for the door and the frame can be obtained with 2 days’ lead time.

Backlog data for the four shops involved in this job are shown below. Assume adequate time is available in the paint and assembly shops.

In the past few days you have quoted jobs that, if they are awarded to you, will require you to use all available capacity in all the shops and a 10-hour overload in shop 9 for the next 4 weeks.

a. When can you deliver the doors to McCall Enterprises? Should you quote a little later delivery just in case some of the outstanding quotes are awarded to your company and use some of the available capacity? Remember, a later delivery date may reduce your chance of being awarded the contract.

b. Should you quote a price that would include overtime pay, just in case the outstanding quotes are awarded to you and use the available capacity?

c. Does it concern you that you have people on the payroll in shops 2 and 6 and do not have sufficient work in those shops to utilize their capacity fully? What are you going to do about this situation?

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Backlog Reports Shop 5 Capacity 40 hours/week Week 1 2 3 4 5 6 7 Load 50 35 28 32 20 10 Shop 9 Capacity 80 hours/week Week 1 2 3 4 5 6 7 Load 100 80 70 50 40 20 20 16 Shop 2 Capacity 40 hours/week Week Load 1 2 3 4 5 6 25 25 20 18 22 10 5 0 Shop 6 Week 2 3 4 Load 16 25 40 00 40 Capacity 40 hours/week 12 5 6 7 25 25 16 2