2. (46 points) PQ Problem: This question deals with a version of the PQ problem discussed in class and in the PQ exercise documents (refer to Canvas Intro Module 1). Bcarcat Industries makes (Bl) manufactures a mix of affordable guitars (P.Q.R) that are fabricated and assembled using four different processing stations (W, X, Y, Z). The process flow chart for Products P. O. Ris depicted in the figure below and includes information on unit price, weekly demand, and processing time on specific stations Bearcat Industries can make and sell up to the limit of its weekly demand with no penalties for not meeting the full demand. One worker staffs each workstation; cach worker is dedicated to work on that workstation alone and is paid $15 per hour regardless of how much the worker or station is used. The plant operates one 8-hour shift per day on a 5-day week, or 40 hours/week, with no overtime. Overhead costs are $9000/week. Flowchart for Products P, Q, R [Inverted triangles represent purchased parts/mw materials consumed per unit process steps at different workstations are denoted by rectangles; note that this is not a flow show, 1.e. cach product can visit different workstations in a different order.) Step 24 SII P I Step Workstation W (12 min) Finish with Step 3 Workstation X (10 min) Product Price $105 Demand 60 Raw Moms */ Step 1 Werkstation W Step 2 Workstation Finish with Step Workstation Z (10 min) Product Price $195 mil Demands Raw Materials 4/hedant Product R 514 R Step Workstation (10 min) Step 2 Workstation W Finish with Step 3 Workstation Y (5 min) Product Price $110 Demand 60 Raw Materials $/ucts (8 points) Which workstation is the bottleneck? Show all calculations used to answer the question. 1 b. (9 points) Calculate the bottleneck ratios and determine which product is given higher production priority by the bottleneck ratio method is this prioritization the same as that obtained using the unit profit method instead of bottleneck ratios? c. (8 points) Determine the production planumber of units of P, Q, and R produced weekly) using the bottleneck ratio method. d. (points) Calculate the weekly net profit corresponding to your production plan after labor cost and overhead c. (points) Answer ANY ONE of the following: Would you increase capacity on any resource using overtime paid at time-and-a-half (1.5 x 15 - 22.55/hour)? If yes, on which resource(s) and for how long? If not, why not? Briefly explain your reasoning (ii) The PQ problem above deals with the short-term problem of weekly production planning. Consider the corresponding long-term strategic capacity and demand-planning problem. List specific longer term choices to be made and discuss how they all fetthe weekly production planning