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Kenworks manufactures 4 types of camping tents (Quiltie, Roughie, Spacey and Toughie). The selling price and costs of both parts and abor per unit is
Kenworks manufactures 4 types of camping tents (Quiltie, Roughie, Spacey and Toughie). The selling price and costs of both parts and abor per unit is provided below: Costs Brand Selling Price Parts Labor Fixed Costs Quiltie $ 200.00 $ 40.00 $ 40.00 Roughie $ 150.00 $ 30.00 $ 30.00 Spacie $ Toughie $ 100.00 $ 20.00 $ 20.00 75.00 $ 10.00 $ 10.00 $ 5,000.00 Kenworks utilizes 4 machines to make all 4 tent types (M1, M2, M3, M4). Every machine can be utilized for 40 hours each week, but management mandates a 10% capacity cushion each week. For this question, assume that there is no setup time required. Processing times at each workstation for each unit of product is provided below. Processing times per unit at each machine (Mins) Brand Quiltie Roughie Spacie Toughie M1 10 10 5 5 M2 15 10 10 5 M3 15 10 15 5 M4 5 10 10 10 Kenwork expects fixed costs each month to be at $5,000. Monthly Demand information is provided below: Brand Demand Quiltie 80 Roughie 60 Spacie 40 Toughie 20 1. Using the traditional approach, what is the order of production for the 4 tents? 2. Using the traditional approach, how many of each of the four tents should the firm schedule for production? Assume a month has 4 weeks of 40 hours each Brand Demand Quiltie 80 Roughie 60 Spacie 40 Toughie 20
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