Question: Problem 3 Schmidt Industries makes four different snake traps; the Harlan, the Gaylen, the Leah and the Matthew. The Harlan sells for $200 and has

Problem 3 Schmidt Industries makes four different

Problem 3 Schmidt Industries makes four different snake traps; the Harlan, the Gaylen, the Leah and the Matthew. The Harlan sells for $200 and has $80 in parts; the Gaylen sells for $150 and requires $60 in parts; the Leah sells for $100 and has $40 in parts; and the Matthew sells for $75 but requires $20 of parts. Schmidt Industries has four machines (we'll call them A, B, C, and D for convenience) that are used in the production of each of these products. Each of these machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Schmidt Industries has forecasted demand of 80 Harlans, 60 Gaylens, 40 Leahs and 20 Matthews for the coming week. 1. Which work center is of greatest concern to the operations manager? Sho'n your work and explain why. 2. Using the bottleneck method (contribution margin per BN minute), in what sequence should products be prioritized for production? Show your work. 3. Using the bottleneck method, what is the optimal product mix? (Remember you need to only calculate for BN to determine the mix.) Show your work

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!