Question:

According to TOC, Identify constraint of magnets and key chains, calculate throughput, and rank the products to maximize the profit.

A recent pilot project introduced by Tim and Dan is the production of JUCY themed souvenir

fridge magnets and key chains for sale to customers. The items are miniature replicas of JUCY

Rental's most popular rental vehicles.

JUCY acquired a 3D printer to produce the souvenirs. There are 3 versions of magnets and 2

versions of key chains to choose from. Production runs alternate between the various magnets

and key chains and there is rarely a full selection of the souvenirs available for sale at any

particular point in time across JUCY Rentals' sites. Nonetheless, there is a clear demand for

the available items as they are always quickly purchased by customers. In fact, customers have

expressed an interest in acquiring one version of each type.

The 3D printing process is relatively slow and is impacted by the detail of the design and the

type of material used to print the souvenirs. There is also a limit to the number of souvenir

items that can be produced on the 3D printer. All items appear to be profitable, as shown in

Table below. However, Tim and Dan are wondering how best to maximize the profit from these

souvenir items.

Table 4: Souvenir production data Magnets Key chains 2 3 2 Revenue / unit $8.75 $8.50 $8.25 $12.50 $12.75 Cost / unit Materials $1.23 $1.34 $1.38 $2.58 $3.20 Labour $1.19 $1.08 $1.03 $1.76 $1.30 Overhead $0.99 $1.14 $1.04 $3.30 $2.80 Total unit cost $3.41 $3.56 $3.45 $7.64 $7.30 Units per hour per activity Prepare & load printer materials 24 30 30 27 31 Print 51 40 55 24 20 Remove & clean 69 65 60 35 32