Table 5.1 A Company Makes Four Products That Have the Following Characteristics

question 71

Multiple Choice

Table 5.1
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
-Use the information in Table 5.1. Using the bottleneck method, which product should be scheduled first?

• A) Product A
• B) Product B
• C) Product C
• D) Product D

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Definitions:

Electroencephalograph (EEG)

A device used to record the electrical activity of the brain, often used in the diagnosis of neurological conditions.

Epileptic Seizure

A burst of uncontrolled electrical activity between brain cells (neurons) that causes temporary abnormalities in muscle tone or movements (stiffness, twitching, or limpness), behaviors, sensations, or states of awareness.

Electrical Activity

The movements or flow of electrical charges (ions) within or between cells, tissues, or organs, which are fundamental for various physiological processes including nerve impulse transmission and muscle contraction.

Hypothalamus

A region of the brain that controls an enormous number of bodily functions, including temperature regulation, thirst, hunger, sleep, and emotional activity.