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So I need help creating a production mix using 2 scenarios. BURNIT, a small local distribution company, orders products from manufacturers, packages the products, and

So I need help creating a production mix using 2 scenarios.

BURNIT, a small local distribution company, orders products from manufacturers, packages the products, and distributes the packaged product to retail customers in the Denver area.They have asked our assistance in reexamining their next production run for two special products.One product is a Disney Sing-A-Long book and the second product is a combination of the same Disney Sing-A-Long book packaged with a CD of the songs.Although they have experienced the manufacturer increasing costs in the past, they have not examined the effect increased costs will have on production plans. The manufacturer has just increased the cost of the CD to $3.70 while the cost of the book remains at $1.70.Although BURNIT has decided not to change the price of the "book only" product of $5.95 and the "book/CD" of $9.95, different production plans have been discussed due to the change in the profit margin.Due to heated arguments during planning meetings, the president, Ms Burns, has requested our assistance in comparing different production plans before they place their next order.

Much of the conflict comes from some members of the planning committee that strongly hold to producing as much of the "book/CD" as possible with available assembly and packaging resources and then produce the "book only" with remaining packaging resources.Although this approach has worked well in the past, newer members of the planning committee propose a possible increase in profits by considering alternative production plans that still comply with company constraints.We have been retained as outside consultants to examine and report on the underlying reasoning of the different approaches.

Ms Burns emphasized strict constraints within their company.Since the company wishes to handle both the books and CDs, they require the number of the "book/CD" product produced to be no less than the "book only" product before packaging.A single production run consists of assembly and packaging operations performed over three days by different personnel.The first day they have only one worker available for eight hours during the day dedicated to the assembly of the "book/CD" product.The next two eight hour days they have two full time workers dedicated to the packaging of both products.The packaging personnel do not assemble and the assembly personnel do not package, they keep these two activities separate as well as personnel.We have been strongly informed to not violate these constraints.Any production plan must satisfy these constraints.

I asked for production standards for their "assembly" and "packaging" operations and they quoted the following rates.Each "book/CD" requires assembly that consists of a shrink wrap process.One worker can complete 35 every minute.The "book only" product requires no assembly.The "book only" product is packaged 2 dozen to a box and 230 boxes can be completed by one worker in one eight-hour shift.The "book/CD" product is packaged 1 dozen to a box and 420 boxes can be packaged for shipment by one worker in one eight-hour shift.We have been asked to consider the production of the individual products without consideration of the number of products packaged for shipment.

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