Question: Please help me find the profit using the traditional method and the bottleneck-based method. If you could please show your work and highlight both anwsers,
Please help me find the profit using the traditional method and the bottleneck-based method. If you could please show your work and highlight both anwsers, that would be greatly appreicated!
York-Perry Industries (YPI) manufactures a mix of affordable guitars (A,B,C) that are fabricated and assembled at four dillerent processing stations (W, X, Y, Z). The operation is a batch process with small setup times that can be considerod negligible. The product information (price, weekly demand, and processing fimes) and process sequences are shown beiow. Purchase parts and raw materials (shown as a per-unit consumption rate) are represented by inverted triangles. YPI is able to make and ses up to the limit of its demand per week with no penaibes incurred for not meeting the full demand. Each workstation is statfed by one highly skilled worker who is dedicated to work on that workstation alone and is paid $11 per hour. The plant opera one 8-hour shift per day and oporates on a 5-day work week (i.e., 40 hours of production per person per week). Ovechead costs are $9,000 week. The sonior management team wants to irchtove the profitablizy of the fem by accepting the night sot of orders. Currecty, docisions are made using the tradisonal method, which is to accept as much of the probuct with the highest contribusion margin as posstic (s) to the limst of its demand, followed by the neat highest controution product and so an unst al avalabie capasty as vitized: Because the fim cannd satisty all the demand, the product mix must be chosen carefuly. Jay Perry, the newly promoted production supenisch, is knowledgeable about the theory of The senior management team wants 10 imgrove the profitabily of the firm by accepting the nght set of orders. Currently, decisions are made using the tradeconal theohod, mich is to accept as constraints and the botilenecktbased method for scheduling. He belinves that proftably can indeed be improred if bottlereck resources are explated bo determine the product mix. What is the change in prosts if, instead of the tradfonw method that Ypt has used thus far, the bottieneck method acrocated by Jay a used tor selecting the product miar? \$o round down fo the neaf whole number before proseeding with ary profe calculations ) The proft ving the vaditional method is 1