Question: 3. Louis Python manufactures two products, Product A and Product B, that are assembled in 3 workstations. Setup times are negligible and capacity cushion is

3. Louis Python manufactures two products, Product A and Product B, that are assembled in 3 workstations. Setup times are negligible and capacity cushion is maintained at 20%. Each workstation is staffed by a worker and paid $5 per hour. The plant operates 40 hours a week with overhead costs of $2,000 per week. a. Calculate the station loads and determine the bottleneck. b. Calculate (1) the optimal product mix quantity and (ii) the profitability using traditional method Calculate (1) the optimal product mix quantity and (ii) the profitability using bottleneck method. Product A Step 1 at workstation W (10 min) Step 2 at workstation X (10 min) Finish with Step 3 at workstation (15 min Product A Price $55 unit Demand: 80 units/Wk Raw materials Purchased part Product B Step 2 SM1 at workstation X O mini at workstation W 14 min Finish with Step 3 at workstation Y (11 min Product B Price: 6 Stunit Demand: 75 units wk Raw materials $5 Purchased part
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