Note need only question number 4

Problem 4 Schmidt Industries makes four different snake traps; the Harlan, the Gaylen, the Leah and the Matthew. The Harlan sells for $200 and has $80 in parts; the Gaylen sells for $150 and requires $60 in parts; the Leah sells for $100 and has $40 in parts; and the Matthew sells for $75 but requires $20 of parts. Schmidt Industries has four machines (we'll call them A, B, C, and D for convenience) that are used in the production of each of these products. Each of these machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Model Harlan Gaylen Leah Matthew Processing time needed at each machine (minutes) Machine A Machine B Machine C Machine D 10 15 15 5 10 10 10 10 5 10 15 10 5 5 5 10 Schmidt Industries has forecasted demand of 80 Harlans, 60 Gaylens, 40 Leahs and 20 Matthews for the coming month. 1. Which work center is of greatest concern to the operations manager? Show your work and explain why. 2. Using the bottleneck method (contribution margin per BN minute), in what sequence should products be prioritized for production? Show your work. 3. Using the bottleneck method, what is the optimal product mix? (Remember you need to only calculate for BN to determine the mix.) Show your work. 4. Explain how the TOC steps are applied in making the decisions in this context