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A company that manufactures television sets is seeking to redesign its assembly line to best meet its demand in a manner that maximizes profit. There
A company that manufactures television sets is seeking to redesign its assembly line to best meet its demand in a manner that maximizes profit. There are 10 steps involved to assemble a television set as shown in the table below. Task A B C . E F G H I J b) Precedence Time (min) none. 8 A 4 A 7 A 3 B 7 C,E 11 D 2 G 8 F,H 5 7 62 ins +7+4+3 7+11+2 The company has a weekly demand of 120 TV sets. Each workstation requires 10 workers regardless of the number of processes that is undertaken in the workstation. In addition, a workstation must not have more than four processes regardless of whether the processing time can allow for more than four processes. The official working hour is 40 hours per week, but overtime is allowed as long as it does not exceed 10 hours per week. The official working time attract a wage of $15 per hour, whereas an overtime attracts a wage of $20 per hour. A television set cost $500 to produce and is sold for $800. The company is faced with three options from which it must select one to maximize its weekly profit. These options are: Calculate the following using the above information: a) If the company goes for option 1: 8+:4+7=19 7+11 = 148 3+2+8=15 1. Meet demand relying on only the official 40-hour weeke 2. Meet demand relying on the official 40-hour week plus 8-hour week overtime. Assume all workers are interested in working overtime. 3. Produce 100 TV sets in-house within the official 40-hour week with no overtime and outsource the additional 20 TV sets from a sister company with the same TV specification at a cost of $750 per set. How should the line be balanced in order to produce the required weekly demand? (5 marks) (ii) How many workers are required to operate the line in a) (i) above? (iii) What is the efficiency of the assembly line you obtained in a) (i) above? (iv) What is the weekly profit to be attained? (1 mark) (2 marks) (2 marks) the company goes for option 2: (i) How should the line be balanced in order to produce the required weekly demand? (5 marks) (ii) How many workers would be required to operate the line in b) (i) above? (1 mark)
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