Reference no: EM13928614
Digital Imaging (DI) produces photo printers for both the professional and consumer markets. The DI consumer division recently introduced two photo printers that provide color printsrivaling those produced by a professional processing lab. TheDI-910 model can produce a 4 x 6 inch borderless print in approximately 37 seconds. The more sophisticate and fasterDI-950 can even produce a 13 x 19 inch border less print. Financial projections show profit contributions of $42for each DI-910 and $87 for each DI-950.
The printers are assembled, tested, and packaged atDI’s plant located in New Bern, North Carolina. This plant is highly automated and uses two manufacturing lines to produce the printers. Line 1 performs the assembly operation with times of 3 minutes per DI-910 printer and 6 minutes per DI-950printer. Line 2 performs both the testing and packaging operations. Times are 4 minutes per DI-910 printer and 2minutes per DI-950 printer. The shorter time for the DI-950printer is a result of its faster print speed. Both manufacturing lines are in operation one 8-hour shift per day.
1. The recommended number of units of each printer to produce to maximize the total contribution to profit for an 8-hourshift. What reasons might management have for not implementing your recommendation?
2. Suppose that management also states that the number of DI910printer produced must best at least as great as the number ofDI-950 units produced. Assuming that the objective is to maximize the total contribution to profit for an8-hour shift, how many units of each printer should be produced?
3. Does the solution you developed in part (2) balance the total time spent on line 1 and the total time spent on line2? Why might this balance or lack of it be a concern to management?
4. Management requested an expansion of the model in part (2) that would provide a better balance between the total time on line1 and the total time on line 2. Management wants to limit the difference between the total time on line 1 and the total time online 2 to 30 minutes or less. If the objective is still to maximize the total contribution to profit, how many units of each printer should be produced? What effect does this work load balancing have on total profit in part (2)?
5. Suppose that in part (1) management specified the objective of maximizing the total number of printers produced each shift rather that total profit contribution. With this objective, how many units of each printer should be produced per shift? What effect does this objective have on total profit and workload balancing?
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: Digital Imaging (DI) produces photo printers for both the professional and consumer markets. The DI consumer division recently introduced two photo printers that provide color printsrivaling those produced by a professional processing lab. The recomm..
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