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Canine Kennels Company (CKC) manufactures two different types of dog chew toys (A and B, sold in 1,000count boxes) that are manufactured and assembled on
Canine Kennels Company (CKC) manufactures two different types of dog chew toys (A and B, sold in 1,000count boxes) that are manufactured and assembled on three different workstations (W. X, and Y) using a small-batch process (see the gure below). Batch setup times are negligible. The owchart denotes the path each product follows through the manufacturing process, and each product's price, demand per week, and processing times per unit are indicated as well. Purchased parts and raw materials consumed during production are represented by inverted triangles. CKC can make and sell up to the limit of its demand per week; no penalties are incurred for not being able to meet all the demand. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $6 per hour. Total labor costs per week are xed. Variable overhead costs are $3,500lweek. The plant operates one 8-hour shift per day, or 40 hours/week. a a Q Q Prod uct A Product: A El Price: $55/unit Demand: 90 units/wk Step 1 Step 2 D) Station W Station X (11 min) (11 min) Purchased part 5 Step 2 Station X Station W (20 min) (17 min) Raw materials V Purchased part Raw materials Prod uct B $6 Product: B Station Y > Price: $65/unit Demand: 85 units/wk Step 1 Which of the three workstations, W, X, or Y has the highest aggregate workload, and thus serves as the bottleneck for CKC? ':|, with a total load time of minutes. (Enter your response as an integer.) Workstation X Workstation Y Workstation W YostPerry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to work on that workstation alone and is paid $15 per hour. The plant operates one 8hour shift per day and operates on a 5day work week (Le, 40 hours of production per person per week). Overhead costs are $9,000/week. ProductA (3 Step 1 Step 2 \\ Step 3 $11 + Station W Station Z . Station X (13 min) (11 min) [3' (11 min) Raw materials Purchased part v Product B $8 Step 1 Step 2 Step 3 _> Station W Station Y > Station 2 (7 min) (15 min) (11 min) Raw materials Purchased part '- Product C Step 1 Step 2 . Step 3 $14 > Station X Station W Station Y (11 min) (18 min) (4 min) Raw materials Purchased part 6 Product: A 6\\ Price: $105/unit Demand: 54 units/wk [3' Product: B Price: $95/unit Demand: 88 units/wk Product: C Price: $110/unit Demand: 60 units/wk Which of the four workstations. W, X, Y, or 2 has the highest aggregate workload, and thus serves as the bottleneck for YPI? E, with a total load time of D minutes. (Enter your response as an integer.) Workstation W Workstation X Workstation Y Workstation Z A.J.'s Wildlife Emporium manufactures two unique birdfeeders (Deluxe and Super Duper) that are manufactured and assembled in up to three different workstations (X, Y, and 2) using a small batch process. Each of the products is produced according to the owchart below. Additionally. the owchart indicates each product's pride, weekly demand. and processing times per unit. Batch setup times are negligible. A.J. can make and sell up to the limit of its weekly demand and there are no penalties for not being able to meet all of the demand. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $18 per hour. The plant operates 40 hours per week, with no overtime. Overhead costs are $2,500 per week. Based on the information provided, as well as the information contained in the owchart, answer the following questions. Q Q Q Q Deluxe $8 Step 1 Step 2 '3 Step 3 Product: Deluxe lZ' > Station Z > Station Y > Station X > Price: $68/unit (22 min) (13 min) (13 min) Demand: 67 units/wk Raw materials W Purchased part Super Duper $3 Step 1 Step 2 Step 3 Product: Super Duper Station X > Station Z a Station Y -> Price: $66/unit (22 min) (8 min) (17 min) Demand: 85 units/wk Raw materials Purchased pan 3. Using the traditional method, which bases decisions solely on a product's contribution to prots and overhead, what is the optimal product mix and what is the overall protability? The product mix obtained using the traditional method is as follows. (Enter your responses as whole numbers.) Deluxe: units/week. Super Duper: units/week. This product mix yields a prot of $ . (Enleryour response as a whole number.) b. Using the bottleneck-based method, what is the optimal product mix and what is the overall protability? The product mix obtained using the bottleneck method is as follows. (Enter your responses as whole numbers.) Deluxe: units/week, Super Duper: units/week. This product mix yields a prot of $ . (Enleryour response as a whole number.)
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