The Question :

Example:

MGMT 3304 TOC Bonus Problem Spring 2021 Prod 100 Prod 200 Prod 300 $130 / unit 110 units / week $140 / unit 130 units / week $120 / unit 120 units / week D 10 min D 10 min D 8 min RM #7 $5/unit 13 min B 5 min 12 min 10 min B 5 min B 10 min A 10 min B 7 min 6 min 12 min RM #5 RM #6 RM #1 $20/unit RM #2 $10/unit RM #3 $20/unit RM #4 $10/unit $20/unit $10/unit A & B: 2 units of each resource C & D: 1 unit of each resource Available time: 2,400 minutes / week Operating Expenses (not including RM): $13,000 / week MGMT 3304 TOC Bonus Problem Spring 2021 Setup time: 10 minutes per machine per task 10 A) Identify the constraint: Worker A Worker B Worker C Work Product Units/Week Time/Unit Total Time/Unit Total Time/Unit Total Time/Unit 100 90 10 900 20 1800 5 450 200 50 5 250 20 1000 5 250 5 300 80 15 1200 5 400 10 800 10 Time Req. 2350 3200 1500 Capacity 2400 2400 2400 % of Capacity 0.9792 1.3333 0.6250 ker D Total 900 250 800 1950 2400 0.8125 B) Throughput per unit: Selling Price / Unit Material Cost / Unit Throughput / Unit Prod 100 $ 150 $ 60 $ 90 Prod 200 $ 120 $ 40 $ 80 Prod 300 $ 100 $ 45 $ 55 $ C) Throughput per constraint minute and product priorities: Prod 100 Prod 200 Throughput / Unit $ 90 $ 80 B time / unit (minutes) 20 20 Throughput / B time 4.50 $ 4.00 Product Priority #2 #3 Prod 300 $ 55 5 $ 11.00 #1 D) Best Product Mix Worker B Units/Week Time/Unit Product 300 80 5 Product 100 90 20 Product 200 10 20 Total Time Capacity Total 400 1800 200 2400 2400 2200 200 10 E) Maximum Expected Profit per Week Units/Week T/ Unit Total T Product 300 80 $ 55 $ 4,400 Product 100 90 $ 90$ 8,100 Product 200 10 $ 80 $ 800 Total Throughput $ 13,300 Total Throughput Operating Expenses Net Profit per Week $ 13,300 $ 7,000 $ 6,300