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Table 7.7
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 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 is 50 As,60 Bs,70 Cs,and 80 Ds 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 7.7.Using the bottleneck method,which product should be scheduled first?
Reminder
A prompt or cue that serves to bring a fact, event, or obligation back to one's consciousness.
Mirror Neurons
Neurons that fire both when an individual acts and when the individual observes the same action performed by another, thought to be related to understanding actions, empathy, and learning through imitation.
Emotions
Complex psychological states involving thoughts, feelings, physiological changes, and behaviors in response to stimuli.
Extinction
In behavioral psychology, the process by which a previously learned behavior is reduced and eventually disappears when reinforcement is no longer provided.
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