Consider a production system consisting of 2 resources M1 and M2. These resources are used to manufacture
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Assume that the resources are operated for 8 hours per day and that each resource requires a setup time of half an hour every day.
a. Assume that the daily demand for A is 90 units and the daily demand for B is 60 units. Can the daily demand be met by the current resources?
b. Assume that the firm would like to maximize its flow rate while maintain- ing a daily production mix of 3A's for 2B's. What is the bottleneck resource? What is the maximum flow rate?
c. What would be the flow rate if the capacity of resource 2 were doubled?
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Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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