eBook Identifying and Exploiting Constraints, Constraint Elevation Middleton Company produces two different metal components used in medical equipment (Component X and Component Y). The company has three processes: milding, grinding, and friding. In molding, molds are created, and motten metal is poured into the shell. Grinding removes the gates that allowed the molten metal to flow into the mold's cavities. In finishing, rough edges caused by the grinders are removed by small, handheld pneumatic tools. In molding, the setup time is one hour. The other two processes have no setup time required. The demand for Component X is 660 units per day, and the demand for Component Y is 1,070 units per day. The minutes required per unit for each prodict are as follows: Product Component X Component Y Minutes Required per Unit of Product Molding 10 Grinding 10 23 Finishing 15 20 The company operates one eight-hour shift. The molding process employs 25 workers (who each work eight hours). Two hours of their time, however, are used for setups (assuming both products are produced). The grinding process has suffident equipment and workers to provide 414 grinding hours per shift The Finishing Department is labor intensive and employs 72 workers, who each work eight hours per day. The only significant unit level variable costs are materials and power For Component x, the variable cost per unit is $45, and for Component xit is $50. Selling prices for X and Y are $100 and $115, respectively. Middleton's policy is to use two setups per day: an initial sehp to produce all that is scheduled for Component X and a second setup (changeover) to produce all that is scheduled for Component Y. The amount scheduled does not necessarily correspond to each product's daily demand. Required: 1. Calculate the time (in minutes) needed each day to meet the daily market demand for Component X and Component Y Net Time Required 12,900 X minutes 20,650 X minutes Molding Grinding Finishing 28,400 X minutes What is the major internal constraint facing Middleton Company? Molding 4 2. Identify the product mix that will maximize daily throughout Number of Units Produced Component X 55 X units Component Y 75 X units