profits. Traditionally, CKC has utilized a method whereby decisions are made to produce 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 margin product, and so on until no more capacity is available. Because capacity is limited, choosing the proper product mix is crucial. The newly hired production supervisor is an avid follower of the TOC philosophy and the bottleneck method for scheduling. He believes that profitability can indeed be approved if bottleneck resources are exploited to determine the product mix. Product A Ship at worlation 110 Step 2 at worlatation X (10 Finish at work 15 Pro Sot Demand Raw materials S4 Machado Product 56 Step 1 at workstation 20 Step 2 at work (14mm Finish with Step 3 at way Products PS Domanik Raw materia Purchased art a) Which of the three workstations, W, X, or Y, has the highest aggregate workload, and thus serves as the bottleneck for CKC? profits. Traditionally, CKC has utilized a method whereby decisions are made to produce 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 margin product, and so on until no more capacity is available. Because capacity is limited, choosing the proper product mix is crucial. The newly hired production supervisor is an avid follower of the TOC philosophy and the bottleneck method for scheduling. He believes that profitability can indeed be approved if bottleneck resources are exploited to determine the product mix. Product A 53 Sep 1 at workstation 010 Step 2 at workstation 110 min Finish with Step 3 at work 015 Product A Price Demand 90 untuk Raw material 54 Part Product B Shep at worstation X 20 min Step 2 at workstation W 114 min Finish w Step 3 at worlation Y (11 min Products Prior sunt Demand Row to Purchased art a) Which of the three workstations, W, X, or Y, has the highest aggregate workload, and thus serves as the bottleneck for CKC? a) Which of the three workstations, W, X, or Y, has the highest aggregate workload, and thus serves as the bottleneck for CKC? Load from Product A Load fro Workstation (min) E x Y 56% .. UAE50 ETISALAT 4G 9:59 PM online-learning.aau.ac.ae b) What is the profit if the traditional contribution margin method is used for determining CKC's product mix? Product Product B Price Raw and Purchased Parts Contribution Margin has a higher contribution Product margin/unit Minutes Minutes Left after Left after Minutes Making Making at Start Workstation > . w X 56% .UAE50 ETISALAT 4G 10:00 PM online-learning.aau.ac.ae has a higher contribution Product margin/unit Minutes Minutes Left after Left after Minutes Making Making at Start Workstation > 3 Y The best product mix according to this traditional approach is then units of and units of 56% ... UAE50 ETISALAT 4G 10:00 PM online-learning.aau.ac.ae The best product mix according to this traditional approach is then units of and units of Revenues ($) Raw materials ($) Purchased part ($) Labor ($) Overhead Profit ($) c) What is the profit if the bottleneck method is used for selecting the product mix? Product P 56% .. UAE50 ETISALAT 4G 10:00 PM online-learning.aau.ac.ae GC Profit ($) c) What is the profit if the bottleneck method is used for selecting the product mix? Product P A Contribution margin ($) Time at bottleneck (min) Contribution margin per minute When ordered from highest to lowest contribution margin/minute at the bottleneck, the manufacturing sequence of these products is Minutes Minutes Left after Left after Minutes Making Making at Start Workstation 56% 1 UAE50 ETISALAT 4G 10:00 PM online-learning.aau.ac.ae When ordered from highest to lowest contribution margin/minute at the bottleneck, the manufacturing sequence of these products is Minutes Minutes Left after Left after Minutes Making Making at Start Workstation > . w Y The best product mix according to this bottleneck based approach is then units of and 56% ... UAE50 ETISALAT 4G 10:00 PM online-learning.aau.ac.ae The best product mix according to this traditional approach is then units of and units of Revenues ($) Raw materials ($) Purchased part ($) Labor ($) Overhead Profit ($) c) What is the profit if the bottleneck method is used for selecting the product mix? Product P profits. Traditionally, CKC has utilized a method whereby decisions are made to produce 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 margin product, and so on until no more capacity is available. Because capacity is limited, choosing the proper product mix is crucial. The newly hired production supervisor is an avid follower of the TOC philosophy and the bottleneck method for scheduling. He believes that profitability can indeed be approved if bottleneck resources are exploited to determine the product mix. Product A Ship at worlation 110 Step 2 at worlatation X (10 Finish at work 15 Pro Sot Demand Raw materials S4 Machado Product 56 Step 1 at workstation 20 Step 2 at work (14mm Finish with Step 3 at way Products PS Domanik Raw materia Purchased art a) Which of the three workstations, W, X, or Y, has the highest aggregate workload, and thus serves as the bottleneck for CKC? profits. Traditionally, CKC has utilized a method whereby decisions are made to produce 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 margin product, and so on until no more capacity is available. Because capacity is limited, choosing the proper product mix is crucial. The newly hired production supervisor is an avid follower of the TOC philosophy and the bottleneck method for scheduling. He believes that profitability can indeed be approved if bottleneck resources are exploited to determine the product mix. Product A 53 Sep 1 at workstation 010 Step 2 at workstation 110 min Finish with Step 3 at work 015 Product A Price Demand 90 untuk Raw material 54 Part Product B Shep at worstation X 20 min Step 2 at workstation W 114 min Finish w Step 3 at worlation Y (11 min Products Prior sunt Demand Row to Purchased art a) Which of the three workstations, W, X, or Y, has the highest aggregate workload, and thus serves as the bottleneck for CKC? a) Which of the three workstations, W, X, or Y, has the highest aggregate workload, and thus serves as the bottleneck for CKC? Load from Product A Load fro Workstation (min) E x Y 56% .. UAE50 ETISALAT 4G 9:59 PM online-learning.aau.ac.ae b) What is the profit if the traditional contribution margin method is used for determining CKC's product mix? Product Product B Price Raw and Purchased Parts Contribution Margin has a higher contribution Product margin/unit Minutes Minutes Left after Left after Minutes Making Making at Start Workstation > . w X 56% .UAE50 ETISALAT 4G 10:00 PM online-learning.aau.ac.ae has a higher contribution Product margin/unit Minutes Minutes Left after Left after Minutes Making Making at Start Workstation > 3 Y The best product mix according to this traditional approach is then units of and units of 56% ... UAE50 ETISALAT 4G 10:00 PM online-learning.aau.ac.ae The best product mix according to this traditional approach is then units of and units of Revenues ($) Raw materials ($) Purchased part ($) Labor ($) Overhead Profit ($) c) What is the profit if the bottleneck method is used for selecting the product mix? Product P 56% .. UAE50 ETISALAT 4G 10:00 PM online-learning.aau.ac.ae GC Profit ($) c) What is the profit if the bottleneck method is used for selecting the product mix? Product P A Contribution margin ($) Time at bottleneck (min) Contribution margin per minute When ordered from highest to lowest contribution margin/minute at the bottleneck, the manufacturing sequence of these products is Minutes Minutes Left after Left after Minutes Making Making at Start Workstation 56% 1 UAE50 ETISALAT 4G 10:00 PM online-learning.aau.ac.ae When ordered from highest to lowest contribution margin/minute at the bottleneck, the manufacturing sequence of these products is Minutes Minutes Left after Left after Minutes Making Making at Start Workstation > . w Y The best product mix according to this bottleneck based approach is then units of and 56% ... UAE50 ETISALAT 4G 10:00 PM online-learning.aau.ac.ae The best product mix according to this traditional approach is then units of and units of Revenues ($) Raw materials ($) Purchased part ($) Labor ($) Overhead Profit ($) c) What is the profit if the bottleneck method is used for selecting the product mix? Product P