Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 18, Problem 14CQ
Summary Introduction
To determine: The situations where theory of constraints is most applicable?
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T F For a food-processing plant such as Kraft Foods,capacity refers to the number of employeesworking on an assembly line
The senior management at Best Products Company (BPC) is concerned with the existing capacity limitation, so they want to accept the mix of orders that maximizes the company’s profits. Traditionally, BPC has utilized a method whereby decisions are made to produce as much of the product with the highest contribution margin as possible (up to the limit of its demand), followed by the next highest contribution margin product, and so on until no more capacity is available. Because capacity is limited, choosing the proper product mix is crucial. Ali Ahmed, the newly hired production supervisor, is an avid follower of the theory of constraints philosophy and the bottleneck method for scheduling. He believes that profitability can indeed be approved if bottleneck resources are exploited to determine the product mix.
What is the profit if the traditional contribution margin method is used for determining BPC’s product mix?
A young mechanical engineer devised two different approaches to completing aproduction task. Both methods entail the purchase of the same working space as well asother capital equipment that will only be employed for this operation.A crew of three guys costing P30.00 per hour is required for Method A. This approachwill produce 10 units per hour, two of which will be rejects. Method B requires aworkforce of two workers, each of whom costs P35.00 per hour, to produce eight unitsper hour, one of which will be rejected. Each reject costs P20.00 because direct materialis lost. If a certain total number of units is to be produced, find which method iseconomical.
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Chapter 18 Solutions
Operations Management
Ch. 18 - Prob. 1CQCh. 18 - Prob. 2CQCh. 18 - Prob. 3CQCh. 18 - Prob. 4CQCh. 18 - Prob. 5CQCh. 18 - Prob. 6CQCh. 18 - With weighted shortest processing time, jobs are...Ch. 18 - Prob. 8CQCh. 18 - Prob. 9CQCh. 18 - Prob. 10CQ
Ch. 18 - Prob. 11CQCh. 18 - Prob. 12CQCh. 18 - Prob. 13CQCh. 18 - Prob. 14CQCh. 18 - Prob. 15CQCh. 18 - Prob. 16CQCh. 18 - Prob. 1PACh. 18 - Prob. 2PACh. 18 - Prob. 3PACh. 18 - Prob. 4PACh. 18 - Prob. 5PACh. 18 - Prob. 6PACh. 18 - Prob. 7PACh. 18 - Prob. 8PACh. 18 - Prob. 9PACh. 18 - Prob. 10PACh. 18 - Prob. 11PACh. 18 - Prob. 12PACh. 18 - Prob. 13PACh. 18 - Prob. 14PACh. 18 - Prob. 15PACh. 18 - Prob. 1CCh. 18 - Prob. 2CCh. 18 - Prob. 3CCh. 18 - Prob. 4C
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- A company producing a standard line and a deluxe line of dishwashers has the following time requirements (in minutes) in departments where either model can be processed. Standard Deluxe Stamping 3 6 Motor Installation 10 10 Wiring 10 15 The standard models contribute $20 each and the deluxe $30 each to profits. Because the company produces other items that share resources used to make the dishwashers, the stamping machine is available only 30 minutes per hour, on average. The motor installation production line has 60 minutes available each hour. There are two lines for wiring, so the time availability is 90 minutes per hour. Write the formulation for this linear program. What are the optimal daily production quantities of each product and the optimal daily profit?arrow_forwardThe trim line at PW is a small subassembly line that, along with other such lines, feeds into the final chassis line. The entire assembly line, which consists of more than 900 workstations, is to make PW’s new E cars. The trim line itself involves only 13 work elements and must handle 20 cars per hour. Work-element data are as follows: Work Element Time (Sec) Immediate Predecessor(s) A B C DE F G H I J K L M 1.8 0.4 1.6 1.5 0.7 0.5 0.8 1.4 1.4 1.4 0.5 1.0 0.8 None None None A A E B C D F,G H J I,K,L a. Draw a precedence diagram.b. What cycle time (in minutes) results in the desired output rate?c. What is the theoretical minimum number of stations?d. Use the longest work element decision rule to balance the line and calculate the efficiency of your solution.e. Use the most followers work element decision rule to balance the line and calculate the efficiency of your solution.arrow_forwardThe assembly department started the month with 468,000 units in its beginning work in process inventory. An additional 1,524,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 126,000 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month? a. 1,992,000 b. 1,992,000 c. 2,118,000 d. 1,866,000 e. 1,398,000 f. 1,182,000arrow_forward
- Cubway, the sandwich shop, is run by Jim, Tim and Kim. When a customer arrives, Jim spends 5 minutes taking order from the customer. After this, Tim prepares bread and Kim prepares filling for the order. These activities are performed in parallel, and take 6 and 12 minutes respectively. Jim then assembles the bread and filling, which takes 4 minutes of his time. Finally, Tim spends 1 minutes in delivering the order and taking payment. What is maximum number of sandwiches Cubway can make per hour? (In other words, what is the capacity of the process in sandwiches per hour?)arrow_forwardConsider a process consisting of five resources that are operated 8 hours per day. Theprocess works on three different products, A, B, and C: Demand for the three different products is as follows: product A, 40 units per day;product B, 50 units per day; and product C, 60 units per day.a. What is the bottleneck?b. What is the flow rate for each flow unit, assuming that demand must be served in the mixdescribed above (i.e., for every four units of A, there are five units of B and six units of C)?arrow_forwardA restaurant has a maximum capacity to serve 60 customers at any given point of time. However, over extended periods in a day, all tables are occupied and the restaurant staff are able to reconfigure the layout to regularly serve 70 customers with many customers still queuing up to get inside the restaurant. What is the utilization of the restaurant?arrow_forward
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