Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A manufacturing system makes two products P and Q, and uses four resources, A, B, C and D. Each resource has one worker regardless of
A manufacturing system makes two products P and Q, and uses four resources, A, B, C and D. Each resource has one worker regardless of resource usage; you may assume that labor costs for processing on the resources is a fixed (sunk) cost that is independent of the production plan/product mix. Only whole units of a product may be sold. A worker operates each resource for 2,400 minutes/week (5 days/week at 8 hours/day); no overtime is permitted. Resources are sometimes unavailable due to a variety of causes including unpredictable breakdown, setups, and preventive maintenance. The average down times for Resources A, B, C, and D, are 20 percent, 25 percent, 30 percent, and 35 percent, respectively. Down time at any resource reduces available capacity for processing at that resource. E.g., a down time of 20 percent at Resource A reduces its available capacity from 2,400 minutes to 1,920 minutes = (1-.20) * 2400. Product P Product Q Unit Selling Price $150 $175 Unit Raw Material Cost $45 $40 Unit Processing Time on A 28 minutes 20 minutes Unit Processing Time on B 21 minutes 21 minutes Unit Processing Time on C 8 minutes 20 minutes Unit Processing Time on D 16 minutes 8 minutes Weekly Demand 50 units 50 units Bottleneck: Identify which of A, B, C, and D is the most capacity-constrained bottleneck resource corresponding to the highest ratio of time required to time available. [Show essential calculations for weekly resource capacity needed and available time to support your choice of the bottleneck. You may fill up entries in the table below required to answer the question correctly.] Bottleneck Resource = Resource Time Required Time Available Implied Utilization Ratio: Time Required / Time Available A B C D Production Plan + Profit: Using the bottleneck-ratio method, what is the product mix that yields high total profit? [Specify bottleneck ratio values and production quantities; assuming that production / sales quantities must be integers.] What is the resulting weekly profit? Product P Product Q Bottleneck Ratio Priority (#1 = highest) Production Quantity Weekly Profit =
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started