Question
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
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 275 units of model Alpha, 150 units of model Bravo, 175 units of model Charlie, and 250 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.
Part A:
Which station is the? bottleneck?
The bottleneck is Station_______ with a total load of __________minutes for the next month. ?(Enter your response as a whole? number.)
Part 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?
Part C.
Using the bottleneck 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?
Alpha Raw materials Product. Alpha Price: \$85/unit Demand: 275 units/month Product: Bravo Price: $90/ unit Demand: 150 units/month Raw materials Charlie Product Charlie Price: \$80/unit Demand: 175 units/month Raw materials Product: Delta -Price: \$65/unit Demand: 250 units/month Raw materials
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