b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating expense)Product MProduct NProduct mixunitsunitsc. What is the maximum weekly net profit this plant can earn using the product mix from Part b? (Hint: consider operating expense andraw material cost)Weekly net profit The M-N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the followingdiagram. Each product uses raw materials with costs as shown. The plant has three different machines: A, B, and C. Each performsdifferent tasks and can work on only one unit of material at a time.Resources: A, B, C (one each)Availability: 3,800 min./weekOperating expense: $12,000/weekProduct M$190/unit120 units/weekMachine AMachine CMachine B15 min./unitA20 min./unitRM-1$60/unitProduct N$200/unit80 units/week15 min./unitB10 min./unitRM-2$40/unitB10 min./unitRM-3$40/unitProcess times for each task are shown in the diagram. Each machine is available 3,800 minutes per week. There are no "Murphys"(major opportunities for the system to foul up). Setup and transfer times are zero. Demand is constant.Operating expenses (including labor) total a constant $12,000 per week. Raw materials are not included in weekly operating expenses.a. Which machine is the constraint in this plant?

Bottleneck station is the one which takes highest time to process 1 unit of any product in a given…

Answered: The M-N plant manufactures two…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section: Chapter Questions

Problem 111P

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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?
Manufacturing Company uses FIFO method of accumulating costs in a two-department process. Materials are introduced at the inception of the process except for a special material which is added in department 2 at 60% completion as to overhead. Inspection is done at the end of the process in both departments. Production data for Department 2 are given below: In process, beginning, (80% labor, 70% overhead)2,000 Transferred in 14,900 In process, ending (40% labor, 20% overhead) 3,000 Normal spoilage 200 Abnormal spoilage (found at 30% completion as to laborand 15% as to overhead due to internal failure) 400 Cost data for the month:In process beginning:Transferred in 15,020 Special materials 1,900 Direct labor 4,388 Overhead 11,044 Current costs:Transferred in 137,080 Special materials 14,030 Direct labor 46,000 Overhead 113,564 The cost of units transferred to finished goods is?The cost of spoilage charged to revenue is?
Up, Up, and Away is a producer of kites and wind socks.Relevant data on a bottleneck operation in the shop for theupcoming fiscal year are given in the following table:Item Kites Wind SocksDemand forecast 30,000 units/year 12,000 units/yearLot size 20 units 70 unitsStandard processing time 0.3 hour/unit 1.0 hour/unitStandard setup time 3.0 hours/lot 4.0 hours/lotThe shop works two shifts per day, 8 hours per shift, 200 daysper year. Currently, the company operates four machines,and desires a 25 percent capacity cushion. How many ma-chines should be purchased to meet the upcoming year’s de-mand without resorting to any short-term capacity solutions?
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by % in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. The bakery currently makes loaves per month. The pay will be $ per hour for employees and each employee works 160 hours per month.Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an increase in his investment. This new blender will mean an increase in his costs of $ per month, but he will achieve the same new output (an increase to ) as the change in labor…
Tuff-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of frame sizes, colors, and component combinations. Identical bicycles are produced in lots of 90. The projected demand, lot size, and time standards are shown in the following table: LOADING... Item Touring Mountain Demand forecast 4,000 units/year 12,000 units/year Lot size 110 units 90 units Standard processing time 0.30 hour/unit 0.75 hour/unit Standard setup time 2 hours/lot 3 hours/lot The shop currently works 8 hours a day, 5 days a week, 50 weeks a year. It operates five workstations, each producing one bicycle in the time shown in the table. The shop maintains a 15 percent capacity cushion. How many workstations will be required next year to meet expected demand without using overtime and without decreasing…
York-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to work on that workstation alone and is paid $17 per hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000/week. Product A $11 Step 1 Station W (14 min) Step 2 Station Z (10 min) Raw materials $5 Purchased part…
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The Holt Million Corporation’s plant manufactures two different products: X and Y. The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Details for each product are shown in the table below: Product X Y Demand Per Week 200 units 100 units Selling Price $150 $160 Machine Operation Required A, B, C B, B, C Operation Times in Minutes 20, 15, 15 15, 15, 15 Raw Materials Needed RM-1, RM-2 RM-2, RM-3 Raw Materials Costs RM-1 = $40/unit, RM-2 or RM-3 = $20/unit Each product uses raw materials with costs as shown in the above table where the processing times and the machine required for each operation are also shown. Each machine is available 4,800 minutes per week. There are no system foul-ups. Demand is deterministic (i. e., no uncertainty). Operating expenses, including labor (but excluding raw materials) total $12,000 per week. Assuming…
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There are four tasks performed in stations: mixing,, shaping, baking and packaging. Each cookie goes thru 1 of the 2 of shaping machines and 1 of the 3 baking ovens. Station 1 Mix 6.5 min/batch Station 2 shape 18 min/batch shape 10 min/batch Station 3 bake 17 min/batch bake 14 min/batch bake 35 min/batch Station 4 pack 9.8 min/batch 1. What is the Throughput time? 2. What is the Bottleneck time? 3. If factory operates 16 hours/day, 6 days/week, what is weekly capacity? 4. If upgrading some equipment to replace one of the existing operations. Which operation should be considered first?
K Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: Annual contracted units Annual fixed cost Per unit variable cost General-Purpose Equipment (GPE) 75,000 $100,000 $15.00 Flexible Manufacturing System (FMS) 75,000 $225,000 $14.75 Dedicated Machine (DM) 75,000 $500,000 $13.00 Based on the total cost, the process that is best suited for the current contracted volume is Suppose the contracted volume changes to 275,000 gear housings. Based on the total cost, the process that is best suited for the new volumo in

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