P2. San Miguel Shoes produces four different models of casual footwear for the Southern California market...
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P2. San Miguel Shoes produces four different models of casual footwear for the Southern California market (detailed production information is provided in Table P2 below). The plant manager knows that total monthly demand exceeds the capacity available for production. Demand next month is estimated to be 200 units of model Woodruff, 175 units of model Frambes, 150 units of model Indiana, and 225 units of model Lane. San Miguel Shoes operates only one 8-hour shift per day and is scheduled to work 20 days next month (no overtime). Further, each station requires a 15 percent capacity cushion. Table P2: Processing Time (min/unit) Price Product Station 1 Station 2 Station 3 Station 4 RM ($/unit) (S/unit) Woodruff (W) 10 10 15 10 10 80 Frambes (F) 10 20 10 95 Indiana (1) 5 5 5 20 20 8 90 Lane (L) 20 10 5 10 5 70 a) what is the bottleneck utilization %? b)what is the profit($) produced from the traditional method? c) Using the bottleneck method, in what sequence should the products be scheduled to made? d)what is the profit($) produced from the bottleneck method? P2. San Miguel Shoes produces four different models of casual footwear for the Southern California market (detailed production information is provided in Table P2 below). The plant manager knows that total monthly demand exceeds the capacity available for production. Demand next month is estimated to be 200 units of model Woodruff, 175 units of model Frambes, 150 units of model Indiana, and 225 units of model Lane. San Miguel Shoes operates only one 8-hour shift per day and is scheduled to work 20 days next month (no overtime). Further, each station requires a 15 percent capacity cushion. Table P2: Processing Time (min/unit) Price Product Station 1 Station 2 Station 3 Station 4 RM ($/unit) (S/unit) Woodruff (W) 10 10 15 10 10 80 Frambes (F) 10 20 10 95 Indiana (1) 5 5 5 20 20 8 90 Lane (L) 20 10 5 10 5 70 a) what is the bottleneck utilization %? b)what is the profit($) produced from the traditional method? c) Using the bottleneck method, in what sequence should the products be scheduled to made? d)what is the profit($) produced from the bottleneck method?
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