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What to do: 1. Calculate the load on each resource to determine the constraint 2. Calculate the most profitable product using the throughput rate of
What to do: 1. Calculate the load on each resource to determine the constraint 2. Calculate the most profitable product using the throughput rate of each product (Do not use cost/unit) 3. Calculate the maximum number of each product to be made considering the constraint capacity 4. Calculate the profit per week considering the constrained capacity and total fixed cost 5. The following project is proposed consisting of 2 changes which must both be implemented: - Reduce the time on process B-1 by 2 minutes per unit - Increase the time on process A1 by 5 minutes per unit - At a once-off cost of R52570.00, should this project proposal be implemented or not? Justify. Some hints: 1) There is only one constraint. If you do not find any, or more than one, you have made a mistake. 2) Loads for non-constraints are between 1900min and 2400min. 3) Load on the constraint is between 2400 min and 3000 min. Anything outside that range is a mistake. 4) The profit is positive. If you score a loss, you have made a mistake. The use of allocated fixed cost to detrmine product profitability in this assignment is forbidden and will result in a mark of zero to be scored, irrespective of any other correct calculations, or accidentally getting the right answer. Resources cannot substitute for one another
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