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

Differential equation - maple, 1. Consider the following differential equat...

1. Consider the following differential equation with initial conditions: t 2 x'' + 5 t x' + 3 x = 0, x(1) = 3, x'(1) = -13. Assume there is a solution of the form: x (t) = t

Lognormal distribution, The Lognormal Distribution If ln(X) is a normal...

The Lognormal Distribution If ln(X) is a normally distributed random variable, then X is said to be a lognormal variable. If P1, P2, P3, ... are the prices of a scrip in per

Positive exponents, Simplify following and write the answers with only posi...

Simplify following and write the answers with only positive exponents.   (-10 z 2 y -4 ) 2 ( z 3 y ) -5 Solution    (-10 z 2 y -4 ) 2 ( z 3 y ) -5

Solve 6 sin ( x/2)= 1 on [-20, Solve 6 sin ( x/2)= 1 on [-20,30] Soluti...

Solve 6 sin ( x/2)= 1 on [-20,30] Solution Let's first work out calculator of the way since that isn't where the difference comes into play. sin( x/2)= 1/6   ⇒x/2= sin

AREA, How do you find the distributive property any faster?

How do you find the distributive property any faster?

Maclaurin series - sequences and series, Maclaurin Series Before w...

Maclaurin Series Before working any illustrations of Taylor Series the first requirement is to address the assumption that a Taylor Series will in fact exist for a specifi

Npv, how to calculate the npv

how to calculate the npv

Solid mensuration, what is the importance of solid mensuration?

what is the importance of solid mensuration?

Calculate the average return, A department store faces a decision for a sea...

A department store faces a decision for a seasonal product for which demand can be high, medium or low. The purchaser can order 1, 2 or 3 lots of this product before the season beg

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