Q27

The answer I have selected in this problem is incorrect meaning the correct solution is one of the remaining options. I want you to solve the problem showing work without using external software such as excel and solving it by hand with whatever means necessary.

Thank you for your help.

Work Center W- Wrong

Options:

Work Center X

Work Center Y

Work Center Z

Table 5.2 A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table. Processing Time (min/unit) Work Center W 4 12 12 9 10 - 8 T 12 T 14 1095 Y T Z Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. Use the information in Table 5.2. Which work center is the bottleneck operation