Question: Purchase X $30/unit Process X and Y at A, 40 minutes Assemble X Y with Y at B, 30 minutes Ovals Max demand 100/week Price

Purchase X $30/unit Process X and Y at A, 40
Purchase X $30/unit Process X and Y at A, 40
Purchase X $30/unit Process X and Y at A, 40 minutes Assemble X Y with Y at B, 30 minutes "Ovals Max demand 100/week Price $100 Purchase Y, $25/unit Process Yat B, 20 minutes Assemble Y with Z at A, 20 minutes "Squares" Max demand 90/week Price $50 Purchase z $7/unit Process Zat B, 10 minutes Notes on above figure: There are two resources / machines / workstations, A and B. Each arrow represents flow of 1 unit of the component/subassembly (so you need 1X and 2 Y to make an Oval and 1 Y and 1 Z to make an Oval). Sequencing of operations on resources is not considered. A and B are the only resources each operating two shifts of 40 hours per week = 4800 min./week. All data is given on a per unit basis, i.e., $ per unit, minutes per unit, and max demand is in units per week. Ignore costs that are not included such as labor and overhead. 1. (7 points) Bottleneck: Which resource is the primary bottleneck? Why? Which resource(s) constrain production by limiting meeting all demand? 3. (*14 points) Overtime: If overtime labor costs $20/hour, how much overtime would you recommend that B/N Inc. run and on which resource(s)? Explain. 4. (7 points) Limited Material Supply: Due to unexpected supply shortages (relating to COVID), there currently is limited weekly supply of raw material Y needed to make the products. The max number of units of Y available each week is 240 units. Which resource is more restrictive-time on the bottleneck or raw material Y availability? Explain your choice. Note: The supply constraint only applies to this sub-question. 5. (*7 points) Uncertain demand: Conceptually discuss how this production planning problem and your thinking about the prioritization and production quantities will change if product demand is uncertain with a mean equal to the max demand value specified above and a coefficient of variation of 0.25? In particularly, will the production quantities of ovals and squares and weekly profit increase or decrease? Explain

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