Flash Electronics Company produces a variety of electronic equipment. One of the plants produces two laser printers: the deluxe and the regular.The demand for the printers is 1,000 units of the deluxe and 2,000 units of the regular. The deluxe printer is priced at $900 and the regular printer is priced at $750.The materials cost is $530 for the deluxe printer and $410 for the regular printer. In addition, the company has the following information for the fourmanufacturing processes (setups, machining, engineering, and packing) showing the amount of time (in minutes) required for each printer for each process,and the total minutes of time available for each process.

TimeRequired/unit TimeRequired/unit Time

Name Deluxe Regular Available

Setups 30 20 80,000

Machining 90 60 220,000

Engineering 120 80 250,000

Packing 30 40 120,000

Required:1. Which process(es), if any, are constraints for the current level of demand?

2. Given any constraints identified in part (1) above, determine the best production and sales plan for the two types of tables.This will be accomplished by performing all three steps based upon the structure below: (1) Identify the constraint (2) Identify the Most Profitable Product

(3)Identify the Most Profitable Product Mix

Answer to Part One:

Answer to Part Two:

Step One: Identify the Constraint - Total Time Required for Each Activity for Given Demand

Time Slack

Deluxe Regular Total Time Available Time

Setups

Machining

Engineering

Packing

Step Two: Identify the Most Profitable Product

Deluxe Regular

Price

Materials Cost

Throughput Margin

Constraint Time

Throughput/Time

Step Three: Identify the Most Profitable Product Mix

Deluxe requirement

Regular requirement

Deluxe Regular Total

Units

Throughput/unit

Total Throughput