The senior management at Davis Watercraft would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is determined by giving resource priority to the highest contribution margin watercrafts. Davis Watercraft always has a contingent of 10 workers on hand; each worker is paid $25 per hour. Overhead costs are $15,000 per week. The plant operates 18 hours per day and 6 days per week. Labor is considered a fixed expense because workers are paid for their time regardless of their utilization. The production manager has determined that workstation 1 is the bottleneck. Detailed production information is provided below. LOADING... Model A B C Price $370 $315 $415 Material costs $50 $35 $115 Weekly demand 100 75 40 Processing Time Station 1 60 0 30 Processing Time Station 2 0 0 60 Processing Time Station 3 10 60 0 Processing Time Station 4 20 30 40 a. Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the product mix that yields the highest total profit? (Enter your responses rounded to the nearest whole number.) A B C Product mix nothing nothing nothing The total profit under the traditional method is $nothing. (Enter your response rounded to the nearest whole number.) b. Using the bottleneck-based method, what is the product mix that yields the highest total profit? (Round your answers to the nearest whole number and ignore the violations on constraints due to rounding.) A B C Product mix nothing nothing nothing The total profit under the new method is $nothing. (Enter your response rounded to the nearest whole number.)
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.
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Model
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||
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A
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B
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C
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Price
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$370
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$315
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$415
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Material costs
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$50
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$35
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$115
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Weekly demand
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100
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75
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40
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Processing Time Station 1
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60
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0
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30
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Processing Time Station 2
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0
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0
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60
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Processing Time Station 3
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10
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60
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0
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Processing Time Station 4
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20
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30
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40
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A
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B
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C
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Product mix
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nothing
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nothing
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nothing
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A
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B
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C
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Product mix
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nothing
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nothing
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nothing
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