Please help me find
a) the profit using the traditional method $____
b) the profit using the bottle neck method $____
Thank you!
York-Perty Industries (YP) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process with smali setup times that can be considered negligible. The product information (price, weekly demand, and processing times) and process sequences are shown below. Purchased parts and raw matarlals (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and sell up to the limit of is demand per week with no penalies incurred for not meeting the full demand. Each workstation is stanted by one highly skiled worker who is dedicated to work on that workstation alone and is pald $13 per hour. The plant operates one 8-hour shift per day and operates on a 5 -day work week (i.e., 40 hours of production per person per week). Overhead costs are $9,000 week. The senior management team wants to improve the profitabity of the firm by accepting the right set of ordern. Currently, decisions are made using the traditional method, which is to accept as much of the product with the highest contribution margin as possble (up to the limit of its demand), followed by the next highest contribution product, and so an unti) all available capacity is utilized. Because the firm cannot sabisfy all the demand, the product mix must be chosen carefully. Jay Perry, the newly promoted production supervisor, is knowedpeable about the theory of constraints and the botileneck-based method for scheduling. He believes that profitability can indeed be improved if bottleneck resources are exploited to determine the product mix. The senior management team wants to improve the proftability of the firm by accepting the fight set of orders. Currently, decisions are made using the traditional method, which is to accept as much of the product with the highest contribution margin as possible (up to the limit of its demand), followed by the next highest contribution product, and so on until at avallable capacity is utilized. Because the firm cannot satsfy all the demand, the product mix must be chosen carofully, Jay Perry, the newly promoted production supervisor, is knowledgeable about the theory of constraints and the bottleneck-based method for scheduling. He believes that profitability can indeed be improved at bottleneck rescurces are exploted to determine the product mix. What is the change in profits it, instead of the traditional method that YPI has used thus far, the bottleneck method advocated by Jay is used for selecting the product mix? What is the profit if the traditional method is used for determining YPris product mix? (Note: When defemining the product mix, if the number of unifs fo produce is not a whole number, be sure fo round down to the next whole number before proceeding wath any profi calculations) The proft ueing the tragsonal method is 1 (Enter your response rounded to the nearest whole number.)
