A.J.'s Wildlife Emporium manufactures two unique birdfeeders (Deluxe and Super Duper) that are manufactured and assembled in up to three different workstations (X, Y, and Z) using a small batch process. Each of the products is produced according to the flowchart below. Additionally, the flowchart indicates each product's price, weekly demand, and processing times per unit. Batch setup times are negligible. A.J. can make and sell up to the limit of its weekly demand and there are no penalties for not being able to meet all of the demand. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $18 per hour. The plant operates 40 hours per week, with no overtime. Overhead costs are $3,000 per week. Based on the information provided, as well as the information contained in the flowchart, answer the following questions. Deluxe $13 Raw materials Super Duper $7 Raw materials Step 1 Station Z (27 min) Step 1 Station X (27 min) Step 2 Station " (16 min) Y Purchased part Step 2 Station Z (10 min) Purchased part $11/ $6 G Step 3 Station XI (15 min) Step 3 Station Y (21 min) Product: Deluxe Price: $72/unit Demand: 53 units/wk Product: Super Duper Price: $68/unit Demand: 65 units/wk a. 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.) Deluxe: units/week, Super Duper: units/week.
A.J.'s Wildlife Emporium manufactures two unique birdfeeders (Deluxe and Super Duper) that are manufactured and assembled in up to three different workstations (X, Y, and Z) using a small batch process. Each of the products is produced according to the flowchart below. Additionally, the flowchart indicates each product's price, weekly demand, and processing times per unit. Batch setup times are negligible. A.J. can make and sell up to the limit of its weekly demand and there are no penalties for not being able to meet all of the demand. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $18 per hour. The plant operates 40 hours per week, with no overtime. Overhead costs are $3,000 per week. Based on the information provided, as well as the information contained in the flowchart, answer the following questions. Deluxe $13 Raw materials Super Duper $7 Raw materials Step 1 Station Z (27 min) Step 1 Station X (27 min) Step 2 Station " (16 min) Y Purchased part Step 2 Station Z (10 min) Purchased part $11/ $6 G Step 3 Station XI (15 min) Step 3 Station Y (21 min) Product: Deluxe Price: $72/unit Demand: 53 units/wk Product: Super Duper Price: $68/unit Demand: 65 units/wk a. 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.) Deluxe: units/week, Super Duper: units/week.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section: Chapter Questions
Problem 59P
Related questions
Question
100%
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 7 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,