Question: materials ( shown as a per - unit consumption rate ) are represented by inverted triangles. YPI is able to make and sell up to
materials shown as a perunit consumption rate are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting
the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to work on that workstation alone and is paid $ per hour. The plant operates one hour shift per day and
operates on a day work week ie hours of production per person per week Overhead costs are $ week.
The senior management team wants to improve the profitability of the firm by accepting the right set of orders. Currently, decisions are made using the traditional method, which is to accept as much
of the product with the highest contribution margin as possible up to the limit of its demand followed by the next highest contribution product, and so on until all available capacity is utilized.
Because the firm cannot satisfy all the demand, the product mix must be chosen carefully. Jay Perry, the newly promoted production supervisor, is knowledgeable about the theory of constraints and
the bottleneckbased method for scheduling. He believes that profitability can indeed be improved if bottleneck resources are exploited to determine the product mix.
What is the change in profits if instead of the traditional method that YPI has used thus far, the bottleneck method advocated by Jay is used for selecting the product mix?
What is the profit if the traditional method is used for determining YPI's product mix? Note: When determining the product mix, if the number of units to produce is not a whole number, be sure to
round down to the next whole number before proceeding with any profit calculations.
The profit using the traditional method is $
Enter your response rounded to the nearest whole number.materials shown as a perunit consumption rate are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting
the full demand. Each workstation is staffed by one highly skilled worker who is dedicated to work on that workstation alone and is paid $ per hour. The plant operates one hour shift per day and
operates on a day work week ie hours of production per person per week Overhead costs are $ week.
The senior management team wants to improve the profitability of the firm by accepting the right set of orders. Currently, decisions are made using the traditional method, which is to accept as much
of the product with the highest contribution margin as possible up to the limit of its demand followed by the next highest contribution product, and so on until all available capacity is utilized.
Because the firm cannot satisfy all the demand, the product mix must be chosen carefully. Jay Perry, the newly promoted production supervisor, is knowledgeable about the theory of constraints and
the bottleneckbased method for scheduling. He believes that profitability can indeed be improved if bottleneck resources are exploited to determine the product mix.
What is the change in profits if instead of the traditional method that YPI has used thus far, the bottleneck method advocated by Jay is used for selecting the product mix?
What is the profit if the traditional method is used for determining YPI's product mix? Note: When determining the product mix, if the number of units to produce is not a whole number, be sure to
round down to the next whole number before proceeding with any profit calculations.
The profit using the traditional method is $
Enter your response rounded to the nearest whole number.are $ week.
indeed be improved if bottleneck resources are exploited to determine the product mix.
What is the change in profits if instead of the traditional method that YPI has used thus far, the bottleneck method advocated by Jay is used for selecting the product mix?
number before proceeding with any profit calculations.
The profit using the traditional method is $
Enter your response rounded to the nearest whole number.
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