Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

York Perry Industries (Y) manufactures a mox of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X,

York Perry Industries (Y) manufactures a mox of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z) the operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to work on that workstation alone and is paid $17 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (e. 40 hours of production per person per week) Overhead costs are $9,000 $9 Step 1 Station W Step 2 Station Z (10 min) Step 3 Station X (min) Raw materials Product B Purchased part Stop 1 Station Wh Step 2 Station Y (7 min) (12 min) Step 3 Station Z (8 min) Raw materials Product C Purchased part Step 1 Staten Xh (11 min) Raw materials Step 2 Station W (15 min) Purchased part Product: A Price $90 Q Demand 61 units/wk G Product B Price $800 unit Demand 131 units/wk Step 3 Son Y (5 min) Product C $105/unk Demand 61 units/wk The senior management team wares to improve the profitability of the firm by accepting the right set of orders Currently, decisions are made using the traditional method, which is to accept as much of the product with the highest convibution margin as possible tap to the limit of its demand) followed by the next highest contribution product and so un until all avalable capacity is utilized Because the firm cannot satisfy all the demand, the product mix must be chosen carefully Jay Pens the newly piramated production supervisor is knowledgeable about the theory of constraints and the bottleneck-based method for scheduling. He believes that profitability can What is the profit the traditional method is used for determining YPTs product mix (Note When determining the product mix if the number of units to produce is not a whole number be sure to round down to the next whole number before proceeding with any profit calculations) The profit using the traditional method is Enter your response rounded to the nearest whole number

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Services And Markets

Authors: Dr. Punithavathy Pandian

8125931201, 978-8125931201

More Books

Students also viewed these Accounting questions