1)
Load of machine A = SUMPRODUCT of Processing time and Forecast demand
= 80*10+60*10+40*5+20*5
= 1700 minutes
Load of machine B = SUMPRODUCT of Processing time and Forecast demand
= 80*15+60*10+40*10+20*5
= 2300 minutes
Load of machine C = SUMPRODUCT of Processing time and Forecast demand
= 80*15+60*10+40*15+20*5
= 2500 minutes
Load of machine D = SUMPRODUCT of Processing time and Forecast demand
= 80*5+60*10+40*10+20*10
= 1600 minutes
Load of machine C is the highest. Therefore, it is the bottleneck
1)
Work center C is the bottleneck. Hence, it is of greatest concern for the operations manager.
2)
Contribution per BN minute of Harlan model = (200-80)/15 = $ 8
Contribution per BN minute of Gaylen model = (150-60)/10 = $ 9
Contribution per BN minute of Leah model = (100-40)/15 = $ 4
Contribution per BN minute of Matthew model = (75-20)/5 = $ 11
Products are prioritized for production in order of their contribution per BN minute
Therefore, priority of products for production is: Matthew, Gaylen, Harlan and Leah
3)
BN minutes remaining on machine C after production of Matthew, Gaylen and Harlan = 2400-(20*5+60*10+80*15)
= 500 minutes
Production of Leah = 500/15 = 33 units
Optimal product mix is:
Harlan = 80
Gaylen = 60
Leah = 33
Matthew = 20
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