Case 2 - A. Using the method that bases mix priority solely...

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A B C Price $350.00 $320.00 $310.00 Material Cost $65.00 $50.00 $75.00 Weekly Demand 120 60 75 Processing Time Station 1 30 0 20 Processing Time Station 2 50 40 0 Processing Time Station 3 0 50 60 Model Name:_______________________ MGSC 395 – Spring 2011 Graded Homework: Constraint Management Due: March 17, 2011 Jim Wentworth of Wentworth Inc. would like to know how the firm’s profitability is altered by product mix. Currently, product mix is determined by giving priority to the model with the highest contribution margin. Details on the Wentworth’s product line (including processing time at each workstation) follow: The firm assumes that each station is available for 6650 minutes per week.
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Unformatted text preview: A. Using the method that bases mix priority solely on a product’s contribution to profits, what product mix yields the highest profit? Quantity of Model A produced: _______ Quantity of Model B produced: _______ Quantity of Model C produced: _______ Total Resulting Profit $ _____________ B. Using the bottleneck-based method, what product mix yields the highest profit? Quantity of Model A produced: _______ Quantity of Model B produced: _______ Quantity of Model C produced: _______ Total Resulting Profit $ _____________ Please attach calculations to this sheet....
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This note was uploaded on 06/06/2011 for the course MGSC 395 taught by Professor Zimmer during the Spring '10 term at South Carolina.

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Case 2 - A. Using the method that bases mix priority solely...

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