C02 LP CASES12ed

C02 LP CASES12ed - Case Problem 1 WORKLOAD BALANCING...

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Case Problem 1 WORKLOAD BALANCING Digital Imaging (DI) produces photo printers for both the professional and consumer mar- kets. The DI consumer division recently introduced two photo printers that provide color prints rivaling those produced by a professional processing lab. The DI-910 model can pro- duce a 4" X 6" borderless print in approximately 37 seconds. The more sophisticated and faster DI-950 can even produce a 13" X 19" borderless print. Financial projections show profit contributions of $42 for each DI-910 and $87 for each DI-950. The printers are assembled, tested, and packaged at DI's plant located in New Bern, North Carolina. This plant is highly automated and uses two manufacturing lines to pro- duce the printers. Line 1 performs the assembly operation with times of 3 minutes per DI-910 printer and 6 minutes per DI-950 printer. Line 2 performs both the testing and pack- aging operations. . Times are 4 minutes per DI-910 printer and 2 minutes per DI-950 printer. The shorter time for the DI-950 printer is a result of its faster print speed. Both manufac- turing lines are in operation one 8-hour shift per day. Managerial Report Perform an analysis for Digital Imaging in order to determine how many units of each printer to produce. Prepare a report to DI's president presenting your findings and recom- mendations. Include (but do not limit your discussion to) a consideration of the following: 1. The recommended number of units of each printer to produce to maximize the total contribution to profit for an 8-hour shift. What reasons might management have for not implementing your recommendation? 2. Suppose that management also states that the number of DI-910 printers produced must be at least as great as the number of DI-950 units produced. Assuming that the objective is to maximize the total contribution to profit for an 8-hour shift, how many units of each printer should be produced? 3. Does the solution you developed in part (2) balance the total time spent on line 1 and the total time spent on line 2? Why might this balance or lack of it be a concern to management? 4. Management requested an expansion of the model in part (2) that would provide a better balance between the total time on line 1 and the total time on line 2. Man- agement wants to limit the difference between the total time on line 1 and the total time on line 2 to 30 minutes or less. If the objective is still to maximize the total con- tribution to profit, how many units of each printer should be produced? What effect does this workload balancing have on total profit in part (2)? 5. Suppose that in part
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This note was uploaded on 03/07/2010 for the course MATH 2310 taught by Professor Shakroh during the Spring '09 term at Langara.

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C02 LP CASES12ed - Case Problem 1 WORKLOAD BALANCING...

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