Identifying and Exploiting Constraints, Constraint Elevation

Middleton Company produces two different metal components used in medical equipment $($Component $x$ and Component $Y).$ The company has three

processes: molding, grinding, and finishing. In molding, molds are created, and molten metal is poured into the shell. Grinding removes the gates that

allowed the molten metal to flow into the mold's cavities. In finishing, rough edges caused by the grinders are removed by small, handheld pneumatic

tools. In molding, the setup time is one hour. The other two processes have no setup time required. The demand for Component $x$ is $900$ units per day,

and the demand for Component $Y$ is $1,500$ units per day. The minutes required per unit for each product are as follows:

The company operates one eight$-$hour shift. The molding process employs $36$ workers $($who each work eight hours$).$ Two hours of their time, however,

are used for setups $($assuming both products are produced$).$ The grinding process has sufficient equipment and workers to provide $600$ grinding hours

per shift.

The Finishing Department is labor intensive and employs $100$ workers, who each work eight hours per day. The only significant unit$-$level variable costs

are materials and power. For Component $x,$ the variable cost per unit is $$40,$ and for Component $Y,$ it is $$50.$ Selling prices for $x$ and $Y$ are $$90$ and

$$110,$ respectively. Middleton's policy is to use two setups per day: an initial setup to produce all that is scheduled for component $x$ and a second setup

$($changeove

Identifying and Exploiting Constraints, Constraint Elevation

Middleton Company produces two different metal components used in medical equipment $($Component $x$ and Component $Y).$ The company has three

processes: molding, grinding, and finishing. In molding, molds are created, and molten metal is poured into the shell. Grinding removes the gates that

allowed the molten metal to flow into the mold's cavities. In finishing, rough edges caused by the grinders are removed by small, handheld pneumatic

tools. In molding, the setup time is one hour. The other two processes have no setup time required. The demand for Component $x$ is $900$ units per day,

and the demand for Component $Y$ is $1,500$ units per day. The minutes required per unit for each product are as follows:

Minutes Required per Unit of Product

The company operates one eight$-$hour shift. The molding process employs $36$ workers $($who each work eight hours$).$ Two hours of their time, however,

are used for setups $($assuming both products are produced$).$ The grinding process has sufficient equipment and workers to provide $600$ grinding hours

per shift.

The Finishing Department is labor intensive and employs $100$ workers, who each work eight hours per day. The only significant unit$-$level variable costs

are materials and power. For Component $x,$ the variable cost per unit is $$40,$ and for Component $Y,$ it is $$50.$ Selling prices for $x$ and $Y$ are $$90$ and

$$110,$ respectively. Middleton's policy is to use two setups per day: an initial setup to produce all that is scheduled for Component $x$ and a second setup

$($changeover$)$ to produce all that is scheduled for Component Y $.$ The amount scheduled does not necessarily correspond to each product's daily demand.

Required:

Calculate the time $($in minutes$)$ needed each day to meet the daily market demand for Component $x$ and Component $Y.$r$)$ to produce all that is scheduled for Component $Y.$ The amount scheduled does not necessarily correspond to each product's daily demand.

Required:

Calculate the time $($in minutes$)$ needed each day to meet the daily market demand for Component $x$ and Component $Y.$