Task:

You manage the production process in the high$-$tech facility of Dale Computers Inc. The facility consists of three different assembly lines $(1,2,3)$ making two different products, X and Y$.$ Assembly Line $2$ is dedicated to the assembly of product X$,$ and assembly line $3$ is dedicated to product Y$.$ Assembly Line $1$ can assemble both the products. The production process begins with the procurement of raw materials from suppliers. Next, the raw materials are processed into six independent subassemblies, A$$F$,$ in separate work areas within the facility. Each product is then assembled from these subassemblies in one of the assembly lines. Product X involves the assembly of subassemblies A$,$ B$,$ C$,$ and E$.$ Product Y requires that subassemblies B$,$ C$,$ D$,$ E$,$ and F be assembled. Subsequent to assembly, each product is finished, customized $($painted and other options added$),$ packaged and shipped. Current trends indicate that $20\%$ of product X and $50\%$ of product Y are customized.

Following are the capacities of the work areas producing the subassemblies:

Subassembly Type Capacity $($Units$/$Week$)$

A $2450$

B $2280$

C $2400$

D $2450$

E $3500$

F $1200$

The annual demands for the products are as shown below:

Product Sub$-$assemblies required for one unit of product Annual Unit Sales

X $(2$ of A$)$; $(1$ of B$,$ C$,$ E$)52,000$

Y $(1$ of B$,$ C$,$ F$)$; $(2$ of D$,$ E$)52,000$

The capacities of the assembly lines and the finishing, packaging and customizing areas are as given below:

Assembly line $11200$ units$/$week Finishing $2500$ units$/$week

Assembly line $2500$ units$/$week Customizing $850$ units$/$week

Assembly line $3600$ units$/$week Packaging $3000$ units$/$week

Notes: $(1)$ Assume $52$ operating weeks$/$year$.$ Converting to weekly demand may be helpful.

$(2)$ Plan production to just meet the demand $($do not overproduce$).$

Answer the following questions Show your calculations.

$1)$ From the point of view of capacity management, what is the key business issue for Dale Computers, given that demand forecast is available? $[$Note: Answer this in concept, before you do Part $2$ below$](10\%)$

$2)$ With the current weekly demands of $1000$ for each product X and Y$,$ what is the current bottleneck resource? Show your calculations. $[$Note: Don$$t change demand yet$](50\%)$

$3)$ Management must deal with changing demand and resource constraint, by analyzing alternative business scenarios. If the weekly demand for X and Y increased proportionately $(=$ by same percentage$),$ identify the top three resources that are bottleneck candidates. Show your calculations. $[$Note: Take Assembly Lines together as a single resource$](20\%)$

$4)$ Now, if demands for X and Y change disproportionately $(=$ by different percentage$)$ in the above situation, what does your analysis tell you about its effect on bottleneck shift, especially in product mix situation of a multiple product plant? Defend your answer with necessary $$what$-$if$$ examples. $[$Note: this part will assess your critical thinking$](20\%)$