A: Which station is the bottleneck? The bottleneck is _______, with a total load of _____ minutes for the next month.B: Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the optimal product mix and what is the overall profitability?Next, order the products from highest contribution margin to the lowest. The obtained sequence is asfollows:C: Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability? Cooper River Glass Works (CRGW) produces four different models of desk lamps as shown on the flowchart. The operations manager knows that total monthlydemand exceeds the capacity available for production. Thus, she is interested in determining the product mix which will maximize profits. Each model's price, routing,processing times, and material cost is provided in the flowchart. Demand next month is estimated to be 200 units of model Alpha, 225 units of model Bravo, 175 unitsof model Charlie, and 275 units of model Delta. CRGW operates only one 8 hours shift per day and is scheduled to work 20 days next month (no overtime). Further,each station requires a 10% capacity cushion.More infoAlphaStep 3Station 1Station 2 Station 3 Station 4(15 min)Step 1Step 2Step 4Product: AlphaPrice: $95/unitDemand: 200 units/montl$10/(10 min)(5 min)| (10 min)Raw materialsBravoStep 1Station 2 Station 3(20 min)Product: BravoPrice: $80/unitDemand: 225 units/montl\$10Step 2(10 min)Raw materialsCharlie$8Step 1Step 2Step 3Step 4Product: CharlieStation 1 Station 2 Station 3 Station 4(5 min)(15 min)Price: $90/unitDemand: 175 units/montl(5 min)(20 min)Raw materialsDeltaStep 1Step 2Step 4Step 3Station 1 Station 2 Station 3 Station 4(10 min)Product: Delta$5Price: $70/unitDemand: 275 units/montl(20 min)(5 min)| (10 min)Raw materials

A. Available capacity per month = 20×8×60×(1 - cushion %)…

A: Which station is the bottleneck? The bottleneck is _______, with a total load of _____ minutes for the next month. B: Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the optimal product mix and what is the overall profitability? Next, order the products from highest contribution margin to the lowest. The obtained sequence is asfollows: C: Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability?

A: Which station is the bottleneck? The bottleneck is ___, with a total load of _ minutes for the next month. B: Using the traditional method, which bases decisions solely on a product's contribution to profits and overhead, what is the optimal product mix and what is the overall profitability? Next, order the products from highest contribution margin to the lowest. The obtained sequence is asfollows: C: Using the bottleneck-based method, what is the optimal product mix and what is the overall profitability?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section: Chapter Questions

Problem 35P: Lemingtons is trying to determine how many Jean Hudson dresses to order for the spring season....

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