Homework Answers
Workload of A = 130*6+130*3 = 1170 minutes
Workload of B = 130*(3+2+2)+130*(2+1.5) = 1365 minutes
Workload of C = 130*8+130*(8+6) = 2860 minutes
Workload of D = 130*7+130*3.5 = 1365 minutes
Workload of C is greater than available time of 2400 minutes. Therefore, it is a bottleneck.
Contribution margin of R = 95-20-3-22 = $ 50
Contribution margin of S = 105-20-22 = $ 63
Contribution margin of R per minute of bottleneck station C = 50/8 = $ 6.25
Contribution margin of S per minute of bottleneck station C = 63/(8+6) = $ 4.5
Contribution margin per minute of bottleneck station C for product R is higher. Therefore, it is prioritized.
Time remaining after production of R = 2400-130*8 = 1360 minutes
Production of S = 1360/(8+6) = 97 units
Best product mix:
R = 130
S = 97
Add Answer to:
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