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

Calculate maximum area of the triangle, if the sum of lengths of hypotenuse...

if the sum of lengths of hypotenuse and a side of right triangle are given, prove the area of the triangle is maximum when angle between them is pi/3

The expected monetary value method, The expected monetary value method ...

The expected monetary value method The expected pay off as profit associated with a described combination of act and event is acquired by multiplying the pay off for that act a

Real constant and difference equation, Derive for the filter from z=a and p...

Derive for the filter from z=a and poles at z=b andz=c, where a, b, c are the real constants the corresponding difference equation. For what values of parameters a, b, and c the fi

Rotational symmetry .., write down the order of rotational symmetry of the ...

write down the order of rotational symmetry of the rectangle

Addition of like terms with same signs, Case 1: Suppose we are given...

Case 1: Suppose we are given expressions like 3abc and 7abc and asked to compute their sum. If this is the case we should not worry much. Because adding like exp

Calculate latest triangular area sail for his boat, Rick is order a latest ...

Rick is order a latest triangular sail for his boat. He needs knowing the area of the sail. Which formula will he use? The area of a triangle is 1/2 times the length of the bas

How far apart are the two boats, Two boats leave the same port at the same ...

Two boats leave the same port at the same time. One travels at a constant speed of 30 km/hr at a bearing of 50° and the other on a bearing of 110° at a constant speed of 26 km/hr.

Word problems involving money, Word Problems Involving Money: The prom...

Word Problems Involving Money: The promoter of a track meet engages a 6,000 seat armory.  He needs to gross $15,000. The price of children's tickets is to be one-half the pric

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