A Local Manufacturer Produces Two Different Products on the Same $\quad$

question 56

Essay

A local manufacturer produces two different products on the same production line. Product A requires .5 hours of labor while product B requires .8 hours of labor. The total labor available in any one week is 600 hours. The production manager has just developed the following weekly production schedule and has asked you to check and see if there is any week in this schedule where the production system will be overloaded or underloaded.
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Week }$
$\begin{array}{|c|c|c|c|c|c|c|}\hline \text { End Item } & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { A } & 900 & 500 & 800 & 900 & 600 & 600 \\\hline \text { B } & 175 & 150 & 300 & 200 & 375 & 375 \\\hline\end{array}$
a. What is the total hourly load on the line in week 2?
b. In what (weeks) is the line overloaded?

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Definitions:

Asset Utilization

Measures how efficiently a company uses its assets to generate revenue.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency of the business.

Total Assets

The sum of all current and long-term assets owned by a company, as represented on its balance sheet, indicating the resources it has at its disposal.

Inventory Turnover Ratio

Cost of goods sold as a multiple of average inventory.