Bottleneck for each product, Mathematics

Assignment Help:

 A company makes 2 products, Product A and Product B. The product characteristics are shown in the following table.

Product

A

B

Price ($/unit)

$800

$1,000

Cost of materials ($/unit)

$200

$250

Cost of labor ($/unit)

$150

$200

Market demand per week (units)

200

150

 

The products are fabricated and assembled in four different workstations (W, X, Y, Z). Every workstation is available for 60 hours a week and there is no setup time required when shifting from the production of 1 product to any other. The processing requirements to make one unit of every product are shown in the table.


Processing time (min/unit)

Workstation

Product A

Product B

W

8

12

X

9

12

Y

10

20

Z

5

8

 

a)      Using the traditional method, which refers to maximizing the contribution margin per unit for every product, what is the optimal product mix and resulting profit?

b)      Using the bottleneck method, which refers to maximizing the contribution margin per minute at the bottleneck for every product, what is the optimal product mix and resulting profit?

 


Related Discussions:- Bottleneck for each product

F distribution or variance ratio distribution, Frequency Distribution or Va...

Frequency Distribution or Variance Ratio Distribution This was developed by R. A Fisher in 1924 and is normally defined in terms of the ratio of the variances of two usually d

Integration of sin ³a.cos ³a , writing sin 3 a.cos 3 a = sin 3 a.cos 2 a.co...

writing sin 3 a.cos 3 a = sin 3 a.cos 2 a.cosa = sin 3 a.(1-sin 2 a).cosa put sin a as then cos a da = dt integral(t 3 (1-t 2 ).dt = integral of t 3 - t 5 dt = t 4 /4-t 6 /6

What is number systems, NUMBER SYSTEMS: Numbers  are intellectual  witne...

NUMBER SYSTEMS: Numbers  are intellectual  witnesses  that belong  only  to  mankind. Example: If the H C F of 657 and 963 is expressible in the form of 657x + 963 x -

Eigenvalues and eigenvectors, Review: Systems of Equations - The tradition...

Review: Systems of Equations - The traditional initial point for a linear algebra class. We will utilize linear algebra techniques to solve a system of equations. Review: Matr

Initial condition for differential equations, Initial Condition(s) are a se...

Initial Condition(s) are a set of conditions, or a condition on the solution which will permit us to find out that solution which we are after.  Initial conditions are frequently a

Critical points, Critical Point Definition : We say that x = c is a critic...

Critical Point Definition : We say that x = c is a critical point of function f(x) if f (c) exists & if either of the given are true. f ′ (c ) = 0        OR             f ′ (c

Example of operational stages in learning maths, Children of the same age c...

Children of the same age can be at different operational stages, and children of different ages, can be at the same developmental stage." Do you agree with this statement? If so, g

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd