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ny Protected View Saved v Search S Mailings Review View Help Fuses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing Vancouver House Ltd. (VHL) manufactures two different types of dog chew toys (A and B, sold in 1,000-count boxes) that are manufactured and assembled on three different workstations (W, X, and Y) using a small-batch process (see figure). Batch setup times are negligible. The flowchart denotes the path each product follows through the manufacturing process, and each product's price, demand per week, and processing times per unit are indicated as well. Purchased parts and raw materials consumed during production are represented by inverted triangles. VHL can make and sell up to the limit of its demand per week; no penalties are incurred for not being able to meet all the demand. Each workstation is staffed by a worker who is dedicated to working on that workstation alone and is paid $21 per hour. Total labor costs per week are fixed. Overhead costs are $3,000/week are fixed. The plant operates one 8-hour shift per day or 40 hours/week. Which of the three workstations, W, X, or Y, has the highest aggregate workload, and thus serves as the bottleneck for VHL? See attachment for diagrams The senior management at VHLis concerned with the existing capacity limitation, so they want to accept the mix of orders that maximizes the company's profits. Traditionally, VHL has utilized a method whereby decisions are made to produce as much of the product with the highest contribution margin as possible (up to the limit of its demand), followed by the next highest contribution margin product. Because capacity is limited, choosing the proper product mix is crucial. Troy Hendrix, the newly hired production supervisor, is an aid follower of the theory of constraints philosophy and the bottleneck method for scheduling. He believes that profitability can indeed be approved if bottleneck resources are exploited to determine the product mix. a) What is the profit if the traditional contribution margin method is used for determining VHL's product mix? b) What is the profit if the bottleneck method advocated by Troy is used for selecting the product mix? c) Calculate the profit gain, both in absolute dollars as well as in terms of percentage gains, by using TOC principles for determining product mix. Please provide answers in excel. Product A $2 Step1 at workstation W 10 min) Step 2 at workstation X (10 may Fresh with ste at workstation 15 Product A Price Demand 90 D/W $55 unit Rewaterin Q Search $
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