Assignment 2 - Production Strategy Better Fitness Inc(BFI...

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Production Strategy Better Fitness Inc. (BFI) manufacture exercise equipment, as of recent the most popular items are the BodyPlus100 and BodyPlus200. BFI’s primary objective is to manufacture as much quantity of BodyPlus100 and BodyPlus200 to maximize an overall profit. The following information will provide a breakdown in manufacturing both the BodyPlus100 and the BodyPlus200. Requirement per unit of Finished Product BodyPlus100 BodyPlus200 Machining & Welding Time (Hours) Painting & Finishing Time (Hours) Raw Material Cost ($) Machining & Welding Time (Hours) Painting & Finishing Time (Hours) Raw Material Cost ($) Frame Unit 4 2 $450 5 4 $650 Press Station 2 1 $300 3 2 $400 Pec-dec Station 2 2 $250 2 2 $250 Leg-press Station 0 0 $0 2 2 $200 Assembling, testing & packaging (Hours) 2 $50 2 $75 Operations Total Available Labor Cost ($/Hour) Machining & Welding Time (Hours) 600 $20 Painting & Finishing Time (Hours) 450 $15 Assembling, testing & packaging (Hours) 140 $12 Product Retail Price ($/Unit) BFI selling price to Dealers 70% of Retail Price ($ Unit) BodyPlus100 $2,400 $1,680 BodyPlus200 $3,500 $2,450
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