Davis Watercraft would like to determine if it is possible to improve firm profitability by changing theirexisting product mix. Currently, the product mix is determined by giving resource priority to thehighest contribution margin watercraft. Davis Watercraft always has a contingent of 10 workers onhand; each worker is paid $25 per hour. Overhead costs are $35,000 per week. The plant operates 18hours per day and 6 days per week. Labor is considered a fixed expense because workers are paid fortheir time regardless of their utilization.a. Draw the flow diagram for this process using the data belowb. Identify the bottleneck machine.PriceMaterial CostWeekly DemandProcessing Time Station 1Processing Time Station 2Processing Time Station 3Processing Time Station 4ModelABC450 400 50040 1107540306050100601020693040

This is a product mix problem - Here we try to find the optimal number of units to be produced in…

Answered: Davis Watercraft would like to…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The senior management at Davis Watercraft would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is determined by giving resource priority to the highest contribution margin watercrafts. Davis Watercraft always has a contingent of 10 workers on hand; each worker is paid $28 per hour. Overhead costs are $15,000 per week. The plant operates 18 hours per day and 6 days per week. Labor is considered a fixed expense because workers are paid for their time regardless of their utilization. The production manager has determined that workstation 1 is the bottleneck. Detailed production information is provided below. Price Material costs Weekly demand Processing Time Station 1 Processing Time Station 2 Processing Time Station 3 Processing Time Station 4 Product mix A $385 $55 90 66 Product mix A | 0 11 22 A Model B a. Using the traditional method, which bases decisions solely on a product's contribution to…
The senior management at Davis Watercraft would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is determined by giving resource priority to the highest contribution margin watercrafts. Davis Watercraft always has a contingent of 10 workers on hand; each worker is paid $25 per hour. Overhead costs are $25,000 per week. The plant operates 18 hours per day and 6 days per week. Labor is considered a fixed expense because workers are paid for their time regardless of their utilization. The production manager has determined that workstation 1 is the bottleneck. Detailed production information is provided below. LOADING... Model A B C Price $420 $320 $460 Material costs $50 $30 $100 Weekly demand 100 75 40…
A business company has the following capacity per month based on the following: 30 working days per month; 1 shift operation at 8 hours per shift; 30 minutes break per shift per employee ABC company produces bicycles and has the following Capacities per process. Frame Welding: 60 bikes per hour per machine Painting: 20 bikes per hour per worker Assembly: 50 bikes per hour per worker Inspection: 100 bikes per hour per worker What can be observed from the system if the demand for the month is 5,000 bikes?
Stackhouse Computing produces high-performance desktop computers. Labor cost data show that thecompany spent $1,000,000 for 5,000 computers produced, and each computer requires 2 technicianhours and 5 hours of direct labor. Direct labor is paid $10 per hour by the company. What is the costof 1 technician hour?
Sintok Machines (SM) produces cast bronze valves for use in offshore oil platforms. Currently, SM produces 1600 valves per day. The 20 workers at SM work from 7 a.m. until 4 p.m., with 30 minutes off for lunch and a 15-minute break during the morning work session and another at the afternoon work session. SM is in a competitive industry and needs to increase productivity to stay competitive. They feel that a 20 % increase is needed. SM's management believes that the 20 % increase will not be possible without a change in working conditions, so they change work hours.The new schedule calls on workers to work from 8:00 a.m. until 5:00 p.m., during which workers can take one hour off at any time of their choosing. Obviously, the number of paid hours is the same as before, but production increases, perhaps because workers are given a bit more control over their workday. After this change, valve production increased to 1800 units per day.Question : A. For the hypothetical 20 percent increase…
A chair manufacturer who produces three different models ( A,B and C) has developed a master production schedule(MPS) for the coming 5 weeks.Historically , worker productivity has averaged 8 units/week/employee based on the “typical mix of Chair”.The company employs 50 workers. The standard labour hours for the chairs are 1.0, 2.0, and 1.5 hours for models A,B and C respectively.Evaluate capacity utilization of the MPS MPS(in units) Week no. 1 2 3 4 5 A 200 0 200 0 100 B 0 0 0 200 100 C 100 300 100 0 0
Sintok Machines (SM) produces cast bronze valves for use in offshore oil platforms. Currently, SM produces 1600 valves per day. The 20 workers at SM work from 7 a.m. until 4 p.m., with 30 minutes off for lunch and a 15-minute break during the morning work session and another at the afternoon work session. SM is in a competitive industry and needs to increase productivity to stay competitive. They feel that a 20 % increase is needed. SM's management believes that the 20 % increase will not be possible without a change in working conditions, so they change work hours. The new schedule calls on workers to work from 8:00 a.m. until 5:00 p.m., during which workers can take one hour off at any time of their choosing. Obviously, the number of paid hours is the same as before, but production increases, perhaps because workers are given a bit more control over their workday. After this change, valve production increased to 1800 units per day.a. Calculate labor productivity for the initial…
2 3. The seven-person maintenance function at a hospital performs both preventive and corrective maintenance on hundreds of items each month. All the workers are scheduled for 40 hours per week and there are four weeks in a month. It is the gool of the maintenance deportment to achieve 90% utilization with a mix of two-thirds preventive maintenance and one-third corrective moaintenance. How many hours each month are spent performing corrective maintenance if they achieve their 90% utilization and correct/preventive mix targets?
Labour Intensity (manhour/unit) Planned production (units) Product A 1,500 15 2.000 C 4.500 D 2.000 16 500 Calculate manpower needs A manufacturing company plans following production and labour intensity of their products for the next year:The company expect to meet the performance standard at 100 %. In average there are annually 20 days of vacation, 7 days of sickness, and 4 day of other absence. The manufacture works in two-shifts with 7.75 working hours per shift. Annually there are 252 working days. 1. Calculate the need of workers to cover the production. The answer is:
A foundry produces circular utility access hatches (manhole covers). If 120 covers are produced in a 5-hour shift, the labor productivity of the line is: 120 covers/hour 12 covers/hour O 10 covers/hour 24 covers/hour
The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation. Working the normal two shifts of 40 hours each per week, the BBBC production process usually produces 2,500 uniforms per week at a standard cost of $120 each. Seventy employees work the first shift and 30 employees work the second. The contract price is $200 per uniform. Because of the urgent need, BBBC is authorized to use around-the-clock production, 6 days per week. When each of the two shifts works 72 hours per week, production increases to 4,000 uniforms per week but at a cost of $144 each.a. Did the multifactor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did t change?b. Did the labor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?c. Did weekly profits increase, decrease, or remain the same?
A 400-fwhp diesel-powered dozer will be used to support a scraper fleet. This dozer was purchased for $395,000. The estimated salvage value at the end of 4 yr is $105,000. The company's cost of capital is 7.6%. The work efficiency will be equal to a 50-min hour. The engine will work at full throttle while push loading the scrapers (59% of the time) and at three-quarter throttle to travel and position.( Fuel consumption factor for diesel engine = 0.04gal/hr/hp, and Fuel cost $1.03/gal). the total operational cost for fuel will be:- %3D

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