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

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Definitions:

Selective Attention

The capacity to focus on specific stimuli or tasks in the environment while ignoring others.

Divided Attention

The ability to process two or more responses or react to multiple demands simultaneously.

Automatization

The process of making actions, processes, or operations automatic through the use of technology, machinery, or systems, frequently enhancing efficiency and consistency.

Concrete Situations

Real-life scenarios or problems that require practical solutions, as opposed to abstract or theoretical issues.