The senior management at XYZ would like to determine if it is possible to improve firm profitability by changing their existing product mix. They produce 3 models: A, B, C. Currently, the product mix is determined by giving resource priority to the highest profit. Assume that there are 4 workstations (WS1, WS2, WS3, WS4), and 4 workers in total (one worker dedicated to cach workstation). Each worker is paid SW per hour. Currently, labor is considered a fixed expense because workers are paid for their time regardless of their utilization. Overhead cost is $ per week and it is a fixed expense. The plant operates 18 hours per day and 6 days per week. Detailed production information is provided below. Please select a from the given intervals in the following table. Model A B SPA SPB SPC RMA RMB RMC 50 units 70 units 60 units 10 min 50 min 30 min Unit selling price Unit raw material cost Weekly demand Unit processing time at Workstation 1 Unit processing time at Workstation 2 Unit processing time at Workstation 3 Unit processing time at Workstation 4 Processing route at workstations 40 min 60 min 20 min 25 min 45 min 65 min 30 min 40 min 1-3-4-2 20 min 1-4-2-3 2-1-4-3 Before solving the question, fill in the following table by selecting different integer selling price & different integer raw material cost for each model from the given intervals and copy only the 1* & 3d columns into your answer sheet. Parameter Interval Value [200,250] SPA SPB [251; 300] SPC (301; 350) [10; 40) RMA RMB [10:40) [10; 40) RMC W [10:20) [10:30) a) (8 points) Find the bottleneck workstation(s). b) (8 points) Using the traditional method, what is the optimal product mix and what is the overall profitability? For the product mix, write the quantity and models properly and box your answer. If no products are produced from a certain model, indicate it as zero. c) (8 points) Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability? For the product mix, write the quantity and models properly and box your answer. If no products are produced from a certain model, indicate it as zero. Now assume that, labor cost is a variable cost and each worker is paid SW/hour, depending on the production volume. Answer the following questions based on this information, such that there are no bottleneck workstations in the manufacturing company: d) (8 points) What is the best weekly product mix and highest weekly profit, based on traditional approach? For the product mix, write the quantity and models properly and box your answer. If no products are produced from a certain model, indicate it as zero. c) (8 points) What is the best weekly product mix and highest weekly profit, based on bottleneck-based approach? For the product mix, write the quantity and models properly and box your answer. If no products are produced from a certain model, indicate it as zero. f) (10 points) Assume that the company decided to implement variable labor cost policy with bottleneck- based approach, as considered in parte). Now, they have the opportunity to double the weekly capacity of each bottleneck station with an extra shift at a weekly cost of $ which is paid for each bottleneck station separately. Suppose that if there is more than one bottleneck station, then all bottlenecks will be resolved. What is the new product mix? (How many units to be produced from each model? Box your answer!). Note that the company cannot sell more than the weekly demand from each model. How much is the new weekly net profit? Should we allow for an extra shift for each bottleneck station or reject it? Why or why not? Show your calculations that supports your answer explicitly. (Before solving the question, select an integer value and copy only the 1" & 3 columns into your answer sheet.) Interval Parameter Value N [1,000; 2,000) The senior management at XYZ would like to determine if it is possible to improve firm profitability by changing their existing product mix. They produce 3 models: A, B, C. Currently, the product mix is determined by giving resource priority to the highest profit. Assume that there are 4 workstations (WS1, WS2, WS3, WS4), and 4 workers in total (one worker dedicated to cach workstation). Each worker is paid SW per hour. Currently, labor is considered a fixed expense because workers are paid for their time regardless of their utilization. Overhead cost is $ per week and it is a fixed expense. The plant operates 18 hours per day and 6 days per week. Detailed production information is provided below. Please select a from the given intervals in the following table. Model A B SPA SPB SPC RMA RMB RMC 50 units 70 units 60 units 10 min 50 min 30 min Unit selling price Unit raw material cost Weekly demand Unit processing time at Workstation 1 Unit processing time at Workstation 2 Unit processing time at Workstation 3 Unit processing time at Workstation 4 Processing route at workstations 40 min 60 min 20 min 25 min 45 min 65 min 30 min 40 min 1-3-4-2 20 min 1-4-2-3 2-1-4-3 Before solving the question, fill in the following table by selecting different integer selling price & different integer raw material cost for each model from the given intervals and copy only the 1* & 3d columns into your answer sheet. Parameter Interval Value [200,250] SPA SPB [251; 300] SPC (301; 350) [10; 40) RMA RMB [10:40) [10; 40) RMC W [10:20) [10:30) a) (8 points) Find the bottleneck workstation(s). b) (8 points) Using the traditional method, what is the optimal product mix and what is the overall profitability? For the product mix, write the quantity and models properly and box your answer. If no products are produced from a certain model, indicate it as zero. c) (8 points) Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability? For the product mix, write the quantity and models properly and box your answer. If no products are produced from a certain model, indicate it as zero. Now assume that, labor cost is a variable cost and each worker is paid SW/hour, depending on the production volume. Answer the following questions based on this information, such that there are no bottleneck workstations in the manufacturing company: d) (8 points) What is the best weekly product mix and highest weekly profit, based on traditional approach? For the product mix, write the quantity and models properly and box your answer. If no products are produced from a certain model, indicate it as zero. c) (8 points) What is the best weekly product mix and highest weekly profit, based on bottleneck-based approach? For the product mix, write the quantity and models properly and box your answer. If no products are produced from a certain model, indicate it as zero. f) (10 points) Assume that the company decided to implement variable labor cost policy with bottleneck- based approach, as considered in parte). Now, they have the opportunity to double the weekly capacity of each bottleneck station with an extra shift at a weekly cost of $ which is paid for each bottleneck station separately. Suppose that if there is more than one bottleneck station, then all bottlenecks will be resolved. What is the new product mix? (How many units to be produced from each model? Box your answer!). Note that the company cannot sell more than the weekly demand from each model. How much is the new weekly net profit? Should we allow for an extra shift for each bottleneck station or reject it? Why or why not? Show your calculations that supports your answer explicitly. (Before solving the question, select an integer value and copy only the 1" & 3 columns into your answer sheet.) Interval Parameter Value N [1,000; 2,000)