You are the new operations management trainee at Niagara Motors. They have a complex production process...

 

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You are the new operations management trainee at Niagara Motors. They have a complex production process involving the following steps: Drawing, extrusion, winding, inspection and packaging. After inspection, good product is packaged and sent to the warehouse for shipping, but defective product is sent to be reworked. The major source of defective product is from the winding process, resulting in a total of 5% of all product being defective. Right now, there are more orders than they can fill. There is an inspection from head office coming in May, and they want to look as profitable as possible for the month closing in April. Determine the best possible production outcome for April. Niagara Motors APRIL ORDERS Product W0075c Product W0033c Product W0005x Product W0007x Note that Niagara Motors has promised their best customer the following during April: Product W0007x Product W0075c Product W0075c Product W0033c Product W0005x Product W0007x 1400 250 1510 1116 Standard Costs (in $ per item) Product Plant Capacity (hours) Drawing 3850 Product W0075c Product W0033c Product W0005x Product W0007x 600 150 Material Labour 33.5 24.5 35.5 75 Extrusion 4200 Bill of Labour (hours/unit) Product Drawing 1 2 01 9.8 7.4 10.6 11.25 Winding 2000 Extrusion 1 1 4 1 Overhead 23.25 17.75 24.5 63.75 Packaging 2300 Winding Packaging 1 3 moo 0 Selling Price 100 80 125 175 0 1 0 3 2 You are the new operations management trainee at Niagara Motors. They have a complex production process involving the following steps: Drawing, extrusion, winding, inspection and packaging. After inspection, good product is packaged and sent to the warehouse for shipping, but defective product is sent to be reworked. The major source of defective product is from the winding process, resulting in a total of 5% of all product being defective. Right now, there are more orders than they can fill. There is an inspection from head office coming in May, and they want to look as profitable as possible for the month closing in April. Determine the best possible production outcome for April. Niagara Motors APRIL ORDERS Product W0075c Product W0033c Product W0005x Product W0007x Note that Niagara Motors has promised their best customer the following during April: Product W0007x Product W0075c Product W0075c Product W0033c Product W0005x Product W0007x 1400 250 1510 1116 Standard Costs (in $ per item) Product Plant Capacity (hours) Drawing 3850 Product W0075c Product W0033c Product W0005x Product W0007x 600 150 Material Labour 33.5 24.5 35.5 75 Extrusion 4200 Bill of Labour (hours/unit) Product Drawing 1 2 01 9.8 7.4 10.6 11.25 Winding 2000 Extrusion 1 1 4 1 Overhead 23.25 17.75 24.5 63.75 Packaging 2300 Winding Packaging 1 3 moo 0 Selling Price 100 80 125 175 0 1 0 3 2

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