Cooper River Glass Works? (CRGW) produces four different models of desk lamps as
ID: 464544 • Letter: C
Question
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.
Explanation / Answer
Alpha demand = 150 units / month
Beta demand = 175 units / onth
Charlie = 250 units / month
Delta = 200 units / month.
Now since each station will be operated for 8 hours shift for 20 days. So total number of minutes availble for each station = 20*8*60 = 9600 minutes.
Now considering the time required at each station for building the product and extra 10 % cushion required. Total amount of time each station should be functional is depicted below:
Based on this table Station 2 is bottleneck with total load of 300 minutes.
Station 1 Station 2 Station 3 Station 4 Alpha 1500 750 2250 1500 Bravo 3500 1750 Charlie 750 3750 750 5000 Delta 4000 1000 2000 2000 Total for each station 6250 9000 6750 8500 With 10% extra cushion 6875 9900 7425 9350