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F You are the new operations management trainee at Niagara Motors. They have a complex production process involving the following steps: Drawing, extrusion, winding, inspection

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F You are the new operations management trainee at Niagara Motors. They have a complex production process involving the following steps: Drawing, extrusion, winding, inspection and packaging. After inspection, good product is packaged and sent to the warehouse for shipping, but defective product is sent to be reworked. The major source of defective product is from the winding process, resulting in a total of 5% of all product being defective. Right now, there are more orders than they can fill. There is an inspection from head office coming in May, and they want to look as profitable as possible for the month closing in April. Determine the best possible production outcome for April Niagara Motors APRIL ORDERS Product W0075c Product W00330 Product W0005X Product W0007x 1400 250 1510 1116 Note that Niagara Motors has promised their best customer the following during April: Product Wo007x 600 e Product W0075c 150 3 Standard Costs (in $ per item) 5 Product Material Labour Overhead Selling Price - Product W00750 33.5 9.8 23.25 100 Product W0033C 24.5 7.4 17.75 80 Product W0005X 35.5 10.6 24.5 125 Product W0007x 75 11.25 63.75 175 Plant Capacity (hours) Drawing Extrusion 3850 4200 Winding 2000 Packaging 2300 Extrusion 1 Winding 1 Packaging 1 1 Bill of Labour (hours/unit) Product Drawing Product W00750 Product W00330 Product Wo00sx 0 Product W0007X 1 2 1 3 4 1 OO Om N

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