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##### QSO600 module 10 problems

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Question;Question 3;CKC manufactures two different types of dog;chew toys (A and B sold 1000 count boxes) that are manufactured and assembled;on three different workstations (W, X, Y) using a small batch process (see;Figuare 7.9) Batch setup times are negligible. The flowchart denotes the path;each product follows through the manufacturing process and each product's price;demand per week and processing times per unit are indicated as well. Purchased;parts and raw materials consumed during production are represented by inverted;triangles. CKC can amke and sell up to the limit of its demand per week, no;penalties are incurred for not being able to meet all the demand. Each;workstation is staffed by a worker who is dedicated to work on that workstation;alin and is paid $6 per hour. Total labor costs per week are fixed. Variable;overheard costs are $3500/week. The plant operates on 8 hour shift per day, or;40 hours/week. Which of the three workstations W, X, or Y has the highest;aggregate workload, and thus serves as the bottleneck for CKC?;Question 4;The senior management at Canine Kernels;Company (CKC) is concerned with the existing capacity limitation, so they want;to accept the mix of orders that maximizes the company?s profits.;Traditionally, CKC has utilized a method whereby decisions are made to produce;as much of the product with the highest contribution margin as possible (up to;the limit of its demand), followed by the next highest contribution margin;product, and so on until no more capacity is available. Because capacity is;limited, choosing the proper product mix is crucial. Troy Hendrix, the newly;hired production supervisor, is an avid follower of the theory of constraints;philosophy and the bottleneck method for scheduling. He believes that;profitability can indeed be approved if bottleneck resources are exploited to;determine the product mix.;a. What is the profit if the traditional;contribution margin method is used for determining CKC?s product mix?;b. What is the profit if the bottleneck method;advocated by Troy is used for selecting the product mix?;c. Calculate the profit gain, both in absolute;dollars as well as in terms of percentage gains, by using TOC principles for;determining product mix;Problem 12;A.J.?s;Wildlife Emporium manufactures two unique bird-feeders (Deluxe and Super Duper);that are manufactured and assembled in up to three different workstations (X;Y, Z) using a small batch process. Each of the products is produced according;to the flowchart in Figure 7.13. 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 $16 per hour. The plant operates 40 hours per;week, with no overtime. Overhead costs are $2,000 per week. Based on the;information pro-vided, as well as the information contained in the flowchart;answer the following questions.;a. 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?;b. Using;the bottleneck-based method, what is the optimal product mix and what is the;overall profitability?;Problem;16;Jane;produces custom greeting cards using six distinct work elements. She would like;to produce 10 cards in each 8-hour card-making session. Figure 7.15 details;each work element and its associated durations in minutes as well as their;precedence relationships.;a. What;cycle time is required to satisfy the required output rate?;b. What is;the theoretical minimum number of workstations required?;c. If Jane;identifies a five-station solution, what is the associated efficiency and;balance delay?;d. If the;cycle time increased by 100 percent, would the theoretical minimum number of;workstations also in-crease by 100 percent?

Paper#62067 | Written in 18-Jul-2015

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