Cooper River Glass Works (CRGW) produces four different models of desk lamps as shown on the flowchart The operations ma

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Cooper River Glass Works Crgw Produces Four Different Models Of Desk Lamps As Shown On The Flowchart The Operations Ma 1 (46.48 KiB) Viewed 25 times

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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 150 units of model Alpha, 175 units of model Bravo, 250 units of model Charlie, and 200 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. Click the icon to view the Cooper River Glass Works Flowchart a. Which station is the bottleneck? The bottleneck is Station 2, with a total load of 9000 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? 43 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.) Product Alpha Bravo Charlie Delta Units to be produced
Alpha $10/ Raw materials Bravo $10/ Step 1 Station 1 (10 min) Raw materials Charlie $8 Delta $5 Step 1 Station 1 (5 min) Raw materials Step 1 Station 1 (20 min) Raw materials Step 2 Station 2 (5 min) Step 1 Station 2- (20 min) Step 2 Station 2 (15 min) Step 2 Station 2 (5 min) Step 3 Station 3 (15 min) Step 2 Station 3 (10 min) Step 3 Station 3 (5 min) Step 3 Station 3 (10 min) Step 4 Station 4 (10 min) Step 4 Station 4 (20 min) Step 4 Station 4 (10 min) Q Q 20 Product Alpha Price: $85/unit Demand: 150 units/mo Product: Bravo Price: $80/unit Demand: 175 units/mo Product. Charlie Price: $75/unit Demand: 250 units/mo Product Delta Price: $95/unit Demand: 200 units/mo