Question

G J Problem 12 - TOC PROBLEM GENERAL INFORMATION PRODUCT X S.P. -$3000 D = 100/WK Machine 1 => 1 Set-Up 240 minutes PRODUCT Y S.P. - $2000 D - 200/WK Machine 2 => 1 Set-Up 30 minutes ASSEMBLY 10 minutes/unit ASSEMBLY 5 minutes/unit Machine 3 ==> 1 Set-up 90 minutes MACHINE 3 22 minutes/unit MACHINE 4 10 minutes/unit MACHINE 2 3 minutes/unit Machine 4 => 1 Set-up 60 minutes MACHINE 1 7 minutes/unit MACHINE 2 5 minutes/unit MACHINE 1 8 minutes/unit Assembly ==> 1 Set-up =0 3 The facility operates 2400 minutes/week. R.M. 1 $500/UNIT R.M.2 $500/UNIT R.M.3 S100/UNIT 2 Weekly operating expense for this operation, not including material purchases is $15000. 1. Identify the system constraint for this operation 2. Determine the best product mix. 3. Calculate the profit generated by the optimal product mix 4. Using the optimal product mix recalculate the utilization of each resource 3 4 5 TOC Homework Problem Sheets Sheet6 Sheet 7 Sheets Sheet Sheet 10 Sheet1 ...

Answer 1

Answerit 9 3 4 90 30 240 Selup-time general information Machine (1 60 (minutes) Assembly - 1 Set up time Calculation of Wakload for all Machine - 1 = (froduct x demend * Processing time ime on m/ci) + (product y demand * forocebing time on m/co) + setup time So take a setup (100*1)+(200 x 8) + (Quo xa) time 700 + 1600 +480 {tle" 1 - stetup 12780 minutes "Mach-1 Canbe used Machine - 12 = ( product & demand processing time on mc 2) + (product, y demand processing DOM time on M/C 2) + Set up time Jun (loo X5) + (200 x x(5+3)) + 30x2 time = 240} 12160 minutes processing time Machine -3= ( product & demand & on Mc. 3) + (product y demand & processing time on M/C 3) + Setup time (100x29) + (200x0) +90x4 12290 minutes Machine -4 = 100X10) +(200X16) + 60xa (1914) thel 3120 minutes highest

wölulood of Assembly Operation - (froduct x demand * Brocessing time on ml 1) + (product & demand processing time on m/c 1) + Selup time = (100 x 10) + (200x 5) + 0 2000 minutes See that workload of machine - A is largest. Machine - al is the Constraint. we Contribution Margin of product & 3000 = 500 500 = 2000/unit 500- 100 1400 lunit. mach to - 2000 of processing time Contribution margin of product y 2000 Contribution margin of product per minute of processing time on 2000/10 10 = 200 for $300 Contribution margin of producty per minute on mach 4 = 1400/80 = $140 Contribution margin of product x per minute of processing time on Hachine- 4 is higher ic. $200 8. It e prioritized Time remaining after production of 200 units setuption of xon Mach 4 2400 - (200x 60 x#) (100x10) -60 2400 - 2000 - 60 1340 minutes N (204)

3 (1340 min 60)/10 = 128 units production of a = Optimal product mix X = 100 Y = 128 X Y 150 100 180 128. b ) No. 3 Profitability a) Selling price, of units axb 15,000 23040 38040 atram les: weekly operating Expenses (15000) not included in material furchase $ 23040 ) optimal utilization of. Mocha (100 x4) + (128 * 8) + (a1oxa) /a400 2204 2400 191.837 optimal utilization of mach a (100 x 5) + (1 a8 x (5+3)) + 30% a /a400 = 1584 optimal utilization of Mach 3 = 661 (100x22) + (1a8 x0) +90X1 2240| auoo 195.42% optimal utilization of Mach & (10 X ) + (128 x 16) + 60 xa 2280/a 2400/2100 -1100 2400 Xatapel 2400 Goal

Overall above Calculations: ~ A Machine 4 Constriant for this operation 2) Best Product Mix X = 100; Y = 128 3) profit generated by the optimal froduct mix = $ 23040 4) Optimal utilization of Mach - 1 = 91.937. Mach - 2 66% Mach - 3 - 95.42% Mach - A 100% (404) did bleed (1) 1x Cox (ex oor