Question
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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