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:

Boxplot

A graphical representation of data that displays the distribution, median, and variability of a dataset, along with outliers.

Temperatures

Numerical representations of heat or cold measured on a specific scale, such as Celsius or Fahrenheit.

States

Politically defined territories that constitute a country, or, in other contexts, conditions or stages of being.

Boxplot

A graphical representation of data points that displays the median, quartiles, and outliers of the dataset.