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A: Which station is the​ bottleneck? The bottleneck is _______​, with a total load of _____ minutes for the next month. 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? Next, order the products from highest contribution margin to the lowest. The obtained sequence is as​follows: C: Using the​ bottleneck-based method, what is the optimal product mix and what is the overall​ profitability?

A: Which station is the​ bottleneck? The bottleneck is _______​, with a total load of _____ minutes for the next month. 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? Next, order the products from highest contribution margin to the lowest. The obtained sequence is as​follows: C: Using the​ bottleneck-based method, what is the optimal product mix and what is the overall​ profitability?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A: Which station is the​ bottleneck? The bottleneck is _______​, with a total load of _____ minutes for the next month.

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?

Next, order the products from highest contribution margin to the lowest. The obtained sequence is as​follows:

C: Using the​ bottleneck-based method, what is the optimal product mix and what is the overall​ profitability?

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 200 units of model Alpha, 225 units of model Bravo, 175 units of model Charlie, and 275 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. More info Alpha Step 3 Station 1Station 2 Station 3 Station 4 (15 min) Step 1 Step 2 Step 4 Product: Alpha Price: $95/unit Demand: 200 units/montl $10/ (10 min) (5 min) | (10 min) Raw materials Bravo Step 1 Station 2 Station 3 (20 min) Product: Bravo Price: $80/unit Demand: 225 units/montl \$10 Step 2 (10 min) Raw materials Charlie $8 Step 1 Step 2 Step 3 Step 4 Product: Charlie Station 1 Station 2 Station 3 Station 4 (5 min) (15 min) Price: $90/unit Demand: 175 units/montl (5 min) (20 min) Raw materials Delta Step 1 Step 2 Step 4 Step 3 Station 1 Station 2 Station 3 Station 4 (10 min) Product: Delta $5 Price: $70/unit Demand: 275 units/montl (20 min) (5 min) | (10 min) Raw materials
Transcribed Image Text: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 200 units of model Alpha, 225 units of model Bravo, 175 units of model Charlie, and 275 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. More info Alpha Step 3 Station 1Station 2 Station 3 Station 4 (15 min) Step 1 Step 2 Step 4 Product: Alpha Price: $95/unit Demand: 200 units/montl $10/ (10 min) (5 min) | (10 min) Raw materials Bravo Step 1 Station 2 Station 3 (20 min) Product: Bravo Price: $80/unit Demand: 225 units/montl \$10 Step 2 (10 min) Raw materials Charlie $8 Step 1 Step 2 Step 3 Step 4 Product: Charlie Station 1 Station 2 Station 3 Station 4 (5 min) (15 min) Price: $90/unit Demand: 175 units/montl (5 min) (20 min) Raw materials Delta Step 1 Step 2 Step 4 Step 3 Station 1 Station 2 Station 3 Station 4 (10 min) Product: Delta $5 Price: $70/unit Demand: 275 units/montl (20 min) (5 min) | (10 min) Raw materials
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