Question: Consider a process with 9 activities and three resource types. Activities 1, 2, and 3 requires 10 minutes of processing and the other activities are

Consider a process with 9 activities and three resource types. Activities 1, 2, and 3 requires 10 minutes of processing and the other activities are 5 minutes each.

  • There are 3 jobs following different paths being processed

Job

Routing

Demand (units/week)

Profit Margin

A

4, 8, and 9

50

20

B

1, 2, 3, 5, 6, 7, and 8

100

75

C

2, 3, 4, 5, 6, 7, 8, and 9

60

60

  • Activities 1, 2, and 3 utilize resource X
  • Activities 4, 5, and 6 resource Y
  • Activities 7, 8, and 9 resource Z
  • Each resource has 2400 minutes of weekly processing time available

Questions:

1) Identify the bottleneck and determine how to use the bottleneck to get the maximum benefit --> which will then lead you to determine the product mix.

2) You have to take Job A for example and see what activities are needed for it (4, 8 and 9). Now 4 requires resource Y while 8 and 9 require resource Z. How much time would you need for each unit of Job A on each of these two resources? Multiply that by the total demand for A to get the total minutes you would need from Y and Z to do all of A. Do the same for Jobs B and C and then analyze if you sufficient minutes (i.e. 2400 mins) on each resource to make all the demand.

3) Can do all of the demand for all three jobs since you only have 2400 minutes on each resource available to you? *YOU MUST CONSIDER ALL 3 JOBS TOGETHER*

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