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MEMO TO: Management Scientist Analysist FROM: Production Manager, Riesen Mfg. Re: Production schedule for next week Riesen Manufacturing produces several products four of which are
MEMO TO: Management Scientist Analysist FROM: Production Manager, Riesen Mfg. Re: Production schedule for next week Riesen Manufacturing produces several products four of which are scheduled for next week. The products are identified by their product number, 220, 230, 240 and 250. The following departments have provided the following helpful information. Production: Each product goes through 3 manufacturing phases, forging, polishing and fit and finish. There are 40 hours available in each phase for next week. The processing time for each product in each phase in minutes is listed in the table below: 220 230 240 250 Forging 12 Polishing 6 7 Fit & Finish 13 10 20 Accounting: Accounting has identified that the profit per unit for each product is in the table below: 12 11 5 13 8 8 220 230 240 250 Profit per Unit $7.00 $4.00 $8.00 $6.00 Marketing: Marketing has developed a contract for 50 unit of product 230 for next week. 3) What would be the impact of increasing the contract for product 230 from 50 units to 60 units? 4) Competitive pressures may require the reduction in selling cost of product 220 such that the profit is reduced to $6.00. What if any impact would this change have on the product mix and total profit? MEMO TO: Management Scientist Analysist FROM: Production Manager, Riesen Mfg. Re: Production schedule for next week Riesen Manufacturing produces several products four of which are scheduled for next week. The products are identified by their product number, 220, 230, 240 and 250. The following departments have provided the following helpful information. Production: Each product goes through 3 manufacturing phases, forging, polishing and fit and finish. There are 40 hours available in each phase for next week. The processing time for each product in each phase in minutes is listed in the table below: 220 230 240 250 Forging 12 Polishing 6 7 Fit & Finish 13 10 20 Accounting: Accounting has identified that the profit per unit for each product is in the table below: 12 11 5 13 8 8 220 230 240 250 Profit per Unit $7.00 $4.00 $8.00 $6.00 Marketing: Marketing has developed a contract for 50 unit of product 230 for next week. 3) What would be the impact of increasing the contract for product 230 from 50 units to 60 units? 4) Competitive pressures may require the reduction in selling cost of product 220 such that the profit is reduced to $6.00. What if any impact would this change have on the product mix and total profit
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