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I. OM Intro / Basics + PQ problem (25 points): Answer ANY 25 points from LA and LB below: A. PQ Product Mix: The process diagram for two products made by B/N Inc is given below: Process X and Purchase X Y at A, 40 $30/unit minutes Assemble X Y "Ovals" with Y at B, 30 Max demand minutes 100/week Price $100 Purchase Process Y at B, Y. $25/unit 20 minutes Assemble Y with "Squares" Z at A, 20 Max demand minutes 90/week Purchase Z. Process Z at B, Price $50 $7/unit 10 minutes Notes on above figure: Each arrow represents flow of 1 unit of the component/subassembly (so you need 1X and 2 Y to make an Oval and 1 Y and 1 Z to make a Square). Sequencing of operations on resources is not considered. A and B are the only resources each operating two shifts of 40 hours per week = 4800 min./week. Page 1 of 7 All data is given on a per unit basis, i.e., $ per unit, minutes per unit, and max demand is in units per week. Ignore costs that are not included such as labor and overhead. 1. (5 points) Bottleneck: Which resource is the bottleneck? 2. (10 points) Production Plan & Profit: How many Ovals and Squares should be sold every week? Explain the logic for your choice. What is the weekly profit from your production plan? 3. (*10 points) Overtime: If overtime labor costs $20/hour, how much overtime would you recommend that B/N Inc. run and on which resource(s)? Explain. 4. (5 points) Limited Material Supply: Due to unexpected supply shortages (relating to COVID), there currently is limited weekly supply of raw material Y needed to make the products. The max number of units of Y available each week is 240 units. Which resource is more restrictive - time on the bottleneck or raw material Y availability? Explain your choice. Note: The supply constraint only applies to this sub