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The Constraint at Dreyfus Inc

question 47

Essay

The constraint at Dreyfus Inc.is an expensive milling machine.The three products listed below use this constrained resource. The constraint at Dreyfus Inc.is an expensive milling machine.The three products listed below use this constrained resource.   Required: a.Rank the products in order of their current profitability from the most profitable to the least profitable.In other words, rank the products in the order in which they should be emphasized.Show your work! b.Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product.Up to how much should the company be willing to pay to acquire more of the constrained resource? Required:
a.Rank the products in order of their current profitability from the most profitable to the least profitable.In other words, rank the products in the order in which they should be emphasized.Show your work!
b.Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product.Up to how much should the company be willing to pay to acquire more of the constrained resource?

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Definitions:

Output

The quantity of goods or services produced in a given time period, by a firm, industry, or country.

Internalized

The process of incorporating external costs or benefits into one's own decision-making criteria.

Externality

A consequence of an economic activity experienced by unrelated third parties, which can be either positive (benefits) or negative (costs).

Gasoline

A highly flammable liquid derived from petroleum, used mainly as fuel in internal combustion engines.

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