Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alpha $10 Step 1 Station 1 (10 min) Raw materials Step 2 Step 3 Station 2 Station 3 (5 min) (15 min) Step 4 Station

image text in transcribedimage text in transcribedimage text in transcribed

Alpha $10 Step 1 Station 1 (10 min) Raw materials Step 2 Step 3 Station 2 Station 3 (5 min) (15 min) Step 4 Station 4 (10 min) Q Product: Alpha Price: $65/unit Demand: 150 units/month Bravo $10 Step 1 Station 2 (20 min) Step 2 Station 3 (10 min) Product: Bravo Price: $80/unit Demand: 175 units/month Raw materials Step 3 Charlie $8 Step 1 Station 1 (5 min) Raw materials Step 2 Station 2 (15 min) Station 3 (5 min) Step 4 Station 4 (20 min) Product: Charlie Price: $95/unit Demand: 250 units/month Delta $5 Step 1 Station 1 (20 min) Raw materials Step 2 Station 2 (5 min) Step 3 Station 3 (10 min) Step 4 Station 4 (10 min) Product: Delta Price: $70/unit Demand: 200 units/month b. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the optimal product mix and what is the overall profitability? The product mix obtained using the traditional method is as follows. (Enter your responses as whole numbers. If your answer has decimal places, round your response down to the next whole number.) Product Units to be produced Alpha 78 Bravo 175 Charlie 250 Delta 200 This product mix yields a profit of $ 51290 . (Enter your response as a whole number.) c. Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability? The product mix obtained using the bottleneck method is as follows. (Enter your responses as whole numbers. If your answer has decimal places, round your response down to the next whole number.) Product Units to be produced Alpha Bravo Charlie Delta Cooper River Glass Works (CRGW) produces four different models of desk lamps as shown on the flowchart. The operations manager knows that total monthly demand exceeds the capacity available for production. Thus, she is interested in determining the product mix which will maximize profits. Each model's price, routing, processing times, and material cost is provided in the flowchart. Demand next month is estimated to be 150 units of model Alpha, 175 units of model Bravo, 250 units of model Charlie, and 200 units of model Delta. CRGW operates only one 8 hours shift per day and is scheduled to work 20 days next month (no overtime). Further, each station requires a 10% capacity cushion. Click the icon to view the Cooper River Glass Works Flowchart. a. Which station is the bottleneck? The bottleneck is Station 2 , with a total load of 9000 minutes for the next month. (Enter your response as a whole number.) b. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the optimal product mix and what is the overall profitability? The product mix obtained using the traditional method is as follows. (Enter your responses as whole numbers. If your answer has decimal places, round your response down to the next whole number.) Product Units to be produced Alpha Bravo Charlie Delta Alpha $10 Step 1 Station 1 (10 min) Raw materials Step 2 Step 3 Station 2 Station 3 (5 min) (15 min) Step 4 Station 4 (10 min) Q Product: Alpha Price: $65/unit Demand: 150 units/month Bravo $10 Step 1 Station 2 (20 min) Step 2 Station 3 (10 min) Product: Bravo Price: $80/unit Demand: 175 units/month Raw materials Step 3 Charlie $8 Step 1 Station 1 (5 min) Raw materials Step 2 Station 2 (15 min) Station 3 (5 min) Step 4 Station 4 (20 min) Product: Charlie Price: $95/unit Demand: 250 units/month Delta $5 Step 1 Station 1 (20 min) Raw materials Step 2 Station 2 (5 min) Step 3 Station 3 (10 min) Step 4 Station 4 (10 min) Product: Delta Price: $70/unit Demand: 200 units/month b. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the optimal product mix and what is the overall profitability? The product mix obtained using the traditional method is as follows. (Enter your responses as whole numbers. If your answer has decimal places, round your response down to the next whole number.) Product Units to be produced Alpha 78 Bravo 175 Charlie 250 Delta 200 This product mix yields a profit of $ 51290 . (Enter your response as a whole number.) c. Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability? The product mix obtained using the bottleneck method is as follows. (Enter your responses as whole numbers. If your answer has decimal places, round your response down to the next whole number.) Product Units to be produced Alpha Bravo Charlie Delta Cooper River Glass Works (CRGW) produces four different models of desk lamps as shown on the flowchart. The operations manager knows that total monthly demand exceeds the capacity available for production. Thus, she is interested in determining the product mix which will maximize profits. Each model's price, routing, processing times, and material cost is provided in the flowchart. Demand next month is estimated to be 150 units of model Alpha, 175 units of model Bravo, 250 units of model Charlie, and 200 units of model Delta. CRGW operates only one 8 hours shift per day and is scheduled to work 20 days next month (no overtime). Further, each station requires a 10% capacity cushion. Click the icon to view the Cooper River Glass Works Flowchart. a. Which station is the bottleneck? The bottleneck is Station 2 , with a total load of 9000 minutes for the next month. (Enter your response as a whole number.) b. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the optimal product mix and what is the overall profitability? The product mix obtained using the traditional method is as follows. (Enter your responses as whole numbers. If your answer has decimal places, round your response down to the next whole number.) Product Units to be produced Alpha Bravo Charlie Delta

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Valuation Emphasis

Authors: John S. Hughes, Frances L. Ayres, Robert E. Hoskin

1st Edition

0471203599, 978-0471203599

More Books

Students also viewed these Accounting questions

Question

What is the purpose of the application form?

Answered: 1 week ago

Question

What is the general purpose of preliminary screening?

Answered: 1 week ago