Please answer a-d.

Consider a small production system for manufacturing two products, X and Y as shown below. Manufacturing X requires two raw materials (RM 1 and 2). Manufacturing Y also requires two raw materials (RM 2 and 3). In addition, Y uses a purchased component that costs $10 per unit. Four work centers (A, B, C, and D) are used to manufacture the products. Each has 7,200 minutes (120 hours; 3 eight-hour shifts) available each week. Operating expenses for the week, including everything except materials costs, is $12,000.

a. What is the maximum potential profit of the production system?

2. Find the bottleneck work center. Show why it is a constraint.
3. What is the maximum feasible amount of profit subject to the constraint?
4. The manager plans to purchase a new technology at $750,000 to reduce the processing time on both RM 2 and RM 3 at the bottleneck workstation by half. What would you say about his plan? Discuss.

X 150 units $200/unit Demand per week 300 units Selling price $180/unit Raw material costs (per unit) RM 1 $40 RM 2 $40 RM 3 Purchased parts Time available on each work center is 7,200 minutes/wk. $401 $40 $10 See the assembly chart below. Prod. X Prod. Y D(10 min) D(5 min) Purchased Component ($10) C(10 min) C(5 min) B (15 min) 1 A (15 min) B (15 min) A (10 min) RM 1 (S40) RM 2 ($40) RM 3 ($40)