Question: The extracted text from the second page reads: - - - * * Lorex Pharmaceuticals * * - Carter Blakely, manager of quality assurance for
The extracted text from the second page reads:Lorex Pharmaceuticals Carter Blakely, manager of quality assurance for Lorex Pharmaceuticals, was pleased with the progress in producing the companys new product, Linatol. Linatol, developed and patented by Lorex years ago, was intended for treating high blood pressure. After eight years of product testing, including clinical trials, the FDA approved Linatol only a week ago. The manufacturing division prepared the production line over the past week, and oneshift production was scheduled to start on Monday. The marketing division decided that the initial offering of Linatol would be in sealed ounce bottles, packaged in cases of with a wholesale price set at $ per case. Blakely's remaining task was to set a target amount for filling the ounce bottles.The Manufacturing of Linatol: Linatol was blended in liter batches with a confidential process. It was bottled on a semiautomatic filling line that included an automatic filling mechanism for liquids, a capping and sealing component, and an electronic sensor to measure the liquid volume in each bottle. When properly filled, the bottles were conveyed to a packaging machine, which loaded and sealed cartons of bottles each. The chosen line for Linatol could fill and package bottles per hour. However, due to delays and setup requirements, the expected production rate was cases per eighthour shift. This slower production rate was acceptable because Linatol was produced in relatively low volumes, and the slower line was not needed for any other product. The entire line was operated by two employees who earned $ per hour, including fringe benefits. Every product incurred an overhead burden to cover the expense of maintaining an antiseptic filling room.Let me know if you'd like further analysis or assistance with these documents!The extracted text from the first page reads:Page : Overhead was charged at a rate of $ per hour. The cost of materials used by the filling line bottles caps, seals, labels, and packaging was estimated to be $ per bottle. Bottles not filled to the ounce requirement were identified by an electronic eye and directed for special handling. A team of fillingroom attendants labeled underfilled bottles as seconds and handpackaged them for sale to secondary markets such as government hospitals at of the normal price of $ per case. Each attendant could label and package about cases per hour and earned $ per hour, including fringe benefits. The initial production of Linatol was scheduled for one hourperweek shift, with batch blending scheduled accordingly.The FillingLine Test: Prior to production, the filling line was tested with an inexpensive liquid and then the product itself. Once perfected, samples from bottles of Linatol were measured. The filling mechanism was set to fill bottles to fluid ounces. The consistency of the amounts in the test bottles demonstrated that the fill mechanism could be set to any target.Setting the Fill Target: Carter Blakely had to determine the fill target. The ounce target was arbitrary with no economic justification. A rule used was to set the target one standard deviation above the required amount. However, this rule, though statistically justified, often ignored economic considerations, leading to buffer storage areas for underfilled bottles becoming clogged and temporarily halting production.I will now extract the text from the second image.
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