In the table below, calculate the bottleneck ratios. Use the bottleneck ratio method to prioritize products and
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In the table below, calculate the bottleneck ratios. Use the bottleneck ratio method to prioritize products and to determine how many units of assembly capacity should be installed for each of the products to make good use of the available 200,000 $ budget. Then, calculate the resulting total annual profit.
Product | P | Q | R |
Unit Profit Margin (Profit $/unit) | 24 | 18 | 42 |
Maximum Annual Demand (in 1000s of units) | 20,000 = 20K | 70 K | 45 K |
Unit Assembly Capacity Cost (Budget $/unit) | 4 | 2 | 6 |
Bottleneck Ratio | |||
Product Priority (1 = highest) | |||
Assembly Capacity Installed in # of units. |
Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
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