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

question 58

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 traditional method, in what sequence should products be scheduled for production?

• A) D, C, B, A
• B) D, B, A, C
• C) C, D, A, B
• D) C, D, B, A

---

Definitions:

Disinhibition

The reduction or removal of inhibition, resulting in an increase in previously suppressed behaviors or actions.

Sensitization

An increased response to a stimulus following repeated exposure, usually associated with adverse or noxious stimuli.

Habituation

A learning process where an organism reduces its responsiveness to a non-threatening stimulus over time through repeated encounters.

Stimuli

External or internal events that elicit a response from an organism.