Alpha Step 1 At station 1 Step 2 At station 2 Step 3 At station 3 Step 4 At station 4 Product: Alpha $80/unit $10 Price: (10 min) (5 min) (15 min) (10 min) Demand: 200 units/wk Raw materials Bravo Step 1 At station 2 Step 2 At station 3 Product: Bravo Price: $10 $95/unit (20 min) (10 min) Demand: 250 units/wk Raw materials Charlie Step 1 At station 1 Step 2 At station 2 Step 3 At station 3 Step 4 At station 4 Product: Charlie Price: $90/unit $8 (5 min) (15 min) (5 min) (20 min) Demand: 150 units/wk Raw materials Delta Step 1 At station 1 Step 3 At station 3 Product: Delta Step 2 At station 2 Step 4 At station 4 $5 Price: $70/unit (20 min) (5 min) (10 min) (10 min) Demand: 225 units/wk Raw materials
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Cooper River Glass Works (CRGW) produces four different
models of desk lamps as shown in Figure 5.15. The opera-
tions manager knows that total monthly demand exceeds
the capacity available for production. Thus, she is inter-
ested in determining the product mix which will maximize
profits. Each model’s price, routing, processing times, and
material cost are provided in Figure 5.15. Demand next
month is estimated to be 200 units of model Alpha,
250 units of model Bravo, 150 units of model Charlie, and
225 units of model Delta. CRGW operates only one 8-hour
shift per day and is
(no overtime). Further, each station requires a 10 percent
capacity cushion.
a. Which station is the bottleneck?
b. Using the traditional method, which bases decisions
solely on a product’s contribution to profits and over-
head, what is the optimal product mix and what is the
overall profitability?
c. Using the bottleneck-based method, what is the optimal
product mix and what is the overall profitability?
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