When we have a constraint in the manufacturing process, we need to identify the most profitable...
When we have a constraint in the manufacturing process, we need to identify the most profitable product mix. With the below information: 1. Identify the constrained asset shortfall 2. Identify the most profitable product based on throughput/hour 3. Identify the optimal product mix to maximise the return for the business Please ensure you show your workings. It is not sufficient to write a number/letter Product A Product B Total Customer orders (number of units) 30 20 Price/unit 175 195 Materials/unit 55 65 Hours of needed of constrained asset to produce the Product 6 10 Total hours available of constrained asset 300.
can someone help, please
Homework Answers
| Statement showing Computations | ||
| Particulars | Product A | Product B |
| Price per unit | 175.00 | 195.00 |
| Materials per unit | 55.00 | 65.00 |
| Contribution per unit | 120.00 | 130.00 |
| Hours needed of constrained asset | 6.00 | 10.00 |
| Contribution per contrained hour | 20.00 | 13.00 |
| Ranking | 1.00 | 2.00 |
| Total hours available | 300.00 | |
| Hours for Product A= 6*30 | 180.00 | |
| Remaining hours for product B | 120.00 | |
| No of units for Product B = 120/10 | 12.00 | |
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When we have a constraint in the manufacturing process, we need
to identify the most profitable...
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