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You manage the production process in the high-tech facility of Dale Computers Inc.The facility produces two products (X&Y) - see Product Make Up & Annual

You manage the production process in the high-tech facility of Dale Computers Inc.The facility produces two products (X&Y) - see Product Make Up & Annual Demand table for details.The facility consists of three different assembly lines - see Assembly Capability & Capacity Table below.

The production process begins with the procurement of raw materials from suppliers.Next, the raw materials are processed into six independent subassemblies, A-F, in separate work areas within the facility.Each product is then assembled on one of the assembly lines (see Subassembly & Post Assembly Capacity Table for sub assembly details).Following assembly, each product is finished, customized (painted and other options added), packaged and shipped.Current trends indicate that 20% of product X and 50% of product Y are customized.

Product Make Up & Annual Demand:

Product Sub-assemblies required for one unit of product Annual Unit Sales

X A= 2, B=1, C=1, E=1 52,000

Y B=1, C=1, D=2, E=2, F=1 52,000

Notes:

(1) Assume 52 operating weeks/year.

(2) Plan production to meet annual demand (do not overproduce).

Assembly Capability Table:

Assembly Line Capability(Units/Week) Capacity (Units / Week)

1 Either Product 1200

2 Product X 500

3 Product Y 600

Subassembly & Post Assembly Capacity Table:

Subassembly Capacity (Units/Week)

Subassembly A: 2450

Subassembly B: 2280

Subassembly C: 2400

Subassembly D: 2450

Subassembly E: 3500

Subassembly F: 1200

Finishing: 2500

Customizing: 820

Packaging: 3000

Question #1- From the point of view of operations management, what is the key strategic business issue for Dale Computers, presented in this specific situation

Question #1 (record letter & answer below for Canvas submission - professors outside this course will review)
Key business issue / why? =

Question #2- With the weekly demands of 1000 for each product X and Y, what is the current bottleneck resource?

Question #2
Product Product X Product Y Total If you cannot enter as %, enter as a ##.#
Demand XX.X%
Resource Product X Product Y Weekly Demand Capacity Utilization
Assembly Lines
Subassembly A
Subassembly B
Subassembly C
Subassembly D
Subassembly E
Subassembly F
Finishing
Customizing
Packaging
Question #3 - Management must deal with changing demand and resource constraints, by analyzing alternative business scenarios. If the weekly demand for X and Y both increased by 20%, identify the top three resources that are bottlenecks.
Question #3
Product Product X Product Y Weekly Demand
Demand XX.X%
Resource Product X Product Y Weekly Demand Capacity Utilization Bottleneck #
Assembly Lines
Subassembly A
Subassembly B
Subassembly C
Subassembly D
Subassembly E
Subassembly F
Finishing
Customizing
Packaging
Question #4 - Now, if demands for X and Y change disproportionately (X by 15%, Y by 20%), what are the top three bottlenecks? What is the maximum weekly throughput of the system?
Question #4
Product Product X Product Y Weekly Demand
Demand XX.X%
Resource Product X Product Y Weekly Demand Capacity Utilization Bottleneck #
Assembly Lines
Subassembly A
Subassembly B
Subassembly C
Subassembly D
Subassembly E
Subassembly F
Finishing
Customizing
Packaging
Maximum System Throughput Total Weekly Units
(record answer below for Canvas submission - professors outside this course will review)
If you could only invest in capacity for one resource, which one would it be and why? =

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