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 prodact 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 Chartie, 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 products 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) This product mix yields a prott of s (Enter your response as a whole number) Product Alpha Bravo Charle Delta Units to be produced 78 175 250 200
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 prodact 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 Chartie, 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 products 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) This product mix yields a prott of s (Enter your response as a whole number) Product Alpha Bravo Charle Delta Units to be produced 78 175 250 200
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Subject: economic
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 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 products 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)
This product mix yields a proft of $ (Enter your response as a whole number)
Product
Alpha
Bravo
Charle
Della
Units to be produced
78
175
250
200
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