Question

Cooper River Glass Works​ (CRGW) produces four different models of desk lamps as shown on the flowchart. The operations manager knows that total monthly demand exceeds the capacity available for production.​ Thus, she is interested in determining the product mix which will maximize profits. Each​ model's price,​ routing, processing​ times, and material cost is provided in the flowchart. Demand next month is estimated to be

300 units of model​ Alpha,150 units of model​ Bravo, 175 units of model​ Charlie, and 250 units of model Delta. CRGW operates only one 8 hours shift per day and is scheduled to work 20 days next month​ (no overtime).​ Further, each station requires a 10​% capacity cushion.

a. Which station is the​ bottleneck?

The bottleneck is Station 3​, with a total load of9375 minutes for the next month. ​(Enter your response as a whole​ number.)

b. Using the traditional​ method, which bases decisions solely on a​ product's contribution to profits and​ overhead, what is the optimal product mix and what is the overall​profitability?

The product mix obtained using the traditional method is as follows. ​(Enter your responses as whole numbers. If your answer has decimal​ places, round your response down to the next whole​ number.)

HW Score: 33.33%, 20 Ouestion He - X ework: M1 Assignment 1 f 20 pts 3 of 4 (2 complete) 711 or Glass 0 More Info ceeds the times, a wrie, a require Alpha Step 1 Step 2 Step 3 Step 4 the icon Station 1 Station 2 Station 3 Station 4 (10 minl 5 min) (15 min) (10 min ation is Raw materials al month l's price, Bravo, 1 prime). F $10 Product Alpha Price: $95/unit Demand: 300 units/month -eck is $10 traditio Step 1 Sinton 2 (20 min) Step 2 Station 3 (10 min) Product: Bravo Price: $90/unit Demand: 150 units/month what is to Raw materials und your mix ob next w Charlie Step 1 Station (5 min) Raw materials Step 2 Station 2 (15 min) Step 3 Station 3 Step 4 Station 4 (20 min) Product: Charlie Price: $70/unit Demand: 175 units/month Delta Step 1 Station 1 (20 min) Raw materials Step 2 Station 2 Step 3 Station 3 (10 min) Station 4 (10 min) Product: Delta Price: $75/unit Demand: 250 units/month answer Print Done Sheet! + This cou Ready MacBook Air

C. Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability? Is that greater or smaller than the traditional method?

I need help with B and C

Answer 1

St1 St2 St3 Margin 85 Product Alpha Bravo Delta Charlie Capacity Demand Initial 300 Remaining 80 150 70 62 175 8640 5640 5640 640 8640 7140 4140 2890 St4 8640 4140 2640 140 8640 5640 5640 3140 250 Only 28 Charlie can be manufactured Total Profit= 85*300+80*150+70*250+28*62=56736. St1 Margin 80 Product Bravo Charlie Delta Alpha Capacity Demand Initial 150 Remaining 62 175 250 300 St2 8640 8640 7765 2765 St3 8640 5640 3015 1765 St4 8640 7140 6265 3765 8640 8640 5140 2640 Only 251 Alpha can be produced Total profit = 80*150+62*175+70*250+251*85=61685. Profit in bottleneck method is greater than from conventional method