Paula said that she would send over some work that operations had been doing.

What is the result of our analysis? What is the best daily production? For starts

we can assume that we want to maximize our profits.

#$4$a$.(50$ including $5)$ So how many units do we produce in each daily cycle?

Over the $20-$day planned production period?

Heres what paula sent $"-=-=-$

$**$ There are $3$ steps for producing either fixture: inspection, storage, and

assembly.

$**$ Believe that Barbara would like to make the most profit on this deal as we can.

$**$ Marketing says that Home Depot will accept any quantity of each piece since

HD anticipates being able to sell all that we can produce. But we do need to

produce SOME of BOTH designs.

$**$ Production cycle is one $8-$hour day.

$**$ For each B$923$ bureau we need $2$ hours of inspection; $4$ hours of assembly; and

$3$ cu ft of storage until picked up$.$

$**$ For each B$911$ bureau we need $3$ cu ft of storage; $1$ hour of inspection; and $10$

hours of assembly.

$**$ Each day we currently have $220$ hours of inspection time; $390$ cu ft of storage

space; and $1000$ hours of assembly time.

$**$ Pickup is usually scheduled for once a day at $6$:$00$ PM after the production line

has closed.

$**$ We currently employ people in $3$ broad job classifications: assemblers;

warehouse$/$storage specialists; and inspectors.

$**$ Storage is managed by volume and not by workhours.

$**$ Currently there is no real cross training.

$**$ We estimate that B$911$ will cost $$850$ to produce; and B$923$ will cost $$540$ to

produce. Those are very firm.

$**$ For the purposes of this analysis the costs are $$loaded$($e$.$g$.,$ include items such

as taxes, depreciation, overhead, other miscellaneous costs, etc.$).$

$**$ B$911$ should sell to HD for $$900$; B$923$ for $$600.$

$**$ The retail price will be determined by HD$.$

$**$ Logistics anticipates no problem getting the needed supplies and parts.

$**$ As long as we plan ahead, we can dedicate all production for a period of $20-$

days to these two models. We are confident that we can manage current customers

and other fixture models thru inventory"