Maximizing throughput by exploiting the constraint The chart below describes a production operation with four resources: A, B, C, and D. Each of these resources has 2,400 minutes of operating time available per week and can be used on only one operation at a time. There are two products, Wand X Product W sells for $60 per unit and has a maximum demand of 100 units per week. Product X sells for $55 per unit and has a maximum demand of 80 units per week. Raw Material 1 is purchased for $20 per unit, Raw Material 2 costs $15 per unit, and Raw Material 3 costs $10 per unit. The operating expense for this operation is $3,800 per week, exclusive of material costs. Producing a unit of W requires one unit of Raw Material 1, worked on at Resource for 10 minutes, then by Resource A for 10 minutes. It also requires one unit of Material 2, worked on at Resource B for 10 minutes, then at Resource C for 5 minutes. One each of these parts is then assembled together at Resource D in an operation that takes 15 minutes, after which it is ready for sale as Product W. Producing a unit of Product X requires one unit of Raw Material 2, worked on at Resource B for 10 minutes, then at C for 5 minutes. It also requires one unit of Raw Material 3, worked on at Resource A for 5 minutes and then at Resource D for 10 minutes. Then one unit of the part from C and one unit of the part from D are assembled together at Resource B in an operation that takes 15 minutes, after which it is ready for sale as Product X Product X Product W $60/unit 100 units per week $55/unit 80 units per week D 15 min/unit B 15 min/unit A 10 min/unit 5 min/unit D 10 min/unit 10 min/unit B 10 min/unit A 5 min/unit Material #1 $20/unit Material #2 $15/unit Material #3 $10/unit How many units of Wand X should be produced? Explain why and what is the net profit for the operation. Why: Exploit the constraint and fulfill all demand possible x Resource w W 100 X X 80 A B D 10 10 15 15 1000 1000 1500 1500 5 25 5 10 400 2000 400 800 Total minutes 1400 3000 1900 2300