Question: 2 The diagram below is a simple production process with four products (P, Q, R & S), that uses five resources (A, B, C, D

2 The diagram below is a simple production process with four products (P, Q, R & S), that uses five resources (A, B, C, D & E) which are each available for a 40 hour work week, and two raw materials (X & Y) where raw material X has only 100 units per week of availability. 1. Use the Theory of Constraints 5 Steps of Focusing to determine the constraint(s), maximum possible Throughput, priority of products to be produced. 2. For the Elevate Step you have the following three options to consider, show which is the best option, including calculations supporting your reasoning and explanation. Option #1 - Pay $50,000 to establish a contract with a new single-source supplier to provide an unlimited supply Raw Material X at an increased cost to $10 per unit. Option #2 - Increase the capacity of Resource E by buying a new machine at a cost of $40,000. This new machine will require another machine operator at that cost of $150 per week. Option #3 - Modify another work center/resource to perform Resource E's work at a cost of $50,000. Specify which resource you recommend and note that the total capacity of that resource still remains 2400 minutes per week for both their old work and the new work they are doing for resource E.

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