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AutoSave Of TOC -HW Problem - Compatibility Mode - Excel Picture Tools Cody Schm

ID: 331923 • Letter: A

Question

AutoSave Of TOC -HW Problem - Compatibility Mode - Excel Picture Tools Cody Schmidt -O X File Home Insert Page Layout Formulas Data Review Help Format Tell me what you want to do Share Split i View Side by Side Formula Bar D Synchronous Scrolling Et Reset Window Normal Page Break Page CustomGlines Headings to New Arrange Freeze Selection Window All Panes Zoom 100% Zoom Switch Macros Unhide Position Windows" Preview Layout Views Workbook Views show Zoom WindoW Picture 206 ? : X Formula Bar PRODUCT X S.?.-S180 D- 200/WK PRODUCT Y SP-S210 D- 100/WK 4 Machine 1> 1 7 Set-Up 45 minutes ASSEMBLY 5 minutes/unit ASSEMBLY 3 minutes/unit Machine 2 1 Set-Up 60 minutes MACHINE 3 4 minutes/unit MACHINE 3 4 minutes/unit MACHINE 2 5 minutes/unit Machine 3>1 12Set-up 90 minutes 13 14 Assembly 15 | Set-up = 0 MACHINE 1 10 minutes/uni MACHINE 2 5 minutes/unit MACHINE 1 8 minutes/unit 17 The facility operates 2400 18 minutes/week. R.M. 1 S20/UNIT R.M. 3 S80/UNIT R.M. 2 O/UNIT 20 Weekly operating expense 21 for this operation, not 22 including material 2Durchases is S10.000 Based on the diagram above and the general information provided answer the following questions TOC Homework Answer Sheet5 Sheet6 Sheet7 Sheet8 Sheet9Sheet10 Sheet11 + 135% 11:57 PM 4/16/2018 Search the web and Windows 49

Explanation / Answer

1)

Machine 1 time required per week = (Demand of product X * Processing time of RM1 on machine 1 + setup time) + (Demand of product Y * Processing time of RM2 on machine 1 + setup time) = (200*10+45)+(100*8+45) = 2890 minutes

Machine 2 time required per week = (Demand of product X+Y * Processing time of RM2 on machine 2 + setup time) + (Demand of product Y * Processing time of RM3 on machine 2 + setup time) = (300*5+60)+(100*5+60) = 2120 minutes

Machine 3 time required per week = (Demand of product X+Y * Processing time of RM2 on machine 3 + setup time) + (Demand of product Y * Processing time of RM1 on machine 3 + setup time) = (300*4+90)+(200*4+90) = 2180 minutes

Assembly time required per week = (Demand of product X * Processing time + setup time) + (Demand of product Y * Processing time + setup time) = (200*5+0)+(100*3+0) = 1300 minutes

Of the three resources, Machine 1 requires 2890 minutes per week. But the facility operates for 2400 minutes per week only. Therefore, Machine 1 is the bottleneck (restraint)

2)

Profit of product X = Selling price - Cost of RM1 - Cost of RM2 = 180 - 20 - 40 = $ 120 per unit

Total minutes required on machine 1 to produce 200 units of product X = Demand of X * processing time + Setup time = 200*10+45 = 2045

Time per unit = 2045/200 = 10.225 minutes

Profit per minute = $ 120 per unit / 10.225 minutes per unit = $ 11.74 per minute

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Profit of product Y = Selling price - Cost of RM1 - Cost of RM2 = 210 - 40 - 80 = $ 90 per unit

Total minutes required on machine 1 to produce 100 units of product Y = Demand of Y * processing time + Setup time = 100*8+45 = 845

Time per unit = 845/100 = 8.45 minutes

Profit per minute = $ 90 per unit / 8.45 minutes per unit = $ 10.65 per minute

Profit per minute for product X is higher. Therefore, X is given priority for production. So 200 units of product X should be produced.

After product of 200 units of product X, remaining time = 2400-2045 = 355 minutes

This time should be used for production of product Y. Number of units of Y that can be produced = (Available time - setup time) / processing time = (355 - 45)/8 = 38.75 .

Essentially 38 complete units of Y can be produced in available time.

Optimal product mix is : X = 200, Y = 38

3) Profitability based on this product mix = 200*120 + 38*90 - 10000 = $ 17,420

4) Optimal utilization of:

machine 1 = ((200*10+45)+(38*8+45))/2400 = 0.9975

machine 2 = (((200+38)*5+60)+(38*5+60))/2400 = 0.625

machine 3 = (((200+38)*4+90)+(200*4+90))/2400 = 0.805

assembly station = (200*5+38*3)/2400 = 0.4642

Dr Jack
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