Table 5.1 A Company Makes Four Products That Have the Following Characteristics

question 127

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, in what sequence should products be scheduled for production?

• A) D, C, B, A
• B) D, C, A, B
• C) C, D, A, B
• D) C, D, B, A

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Definitions:

Limestone

A sedimentary rock composed mainly of calcium carbonate, often formed from the remains of marine organisms.

Mineral Composition

The unique combination and arrangement of minerals within a rock, which determines the rock's characteristics and properties.

Sedimentary Rocks

Rocks formed by the accumulation or deposition of mineral or organic particles at the Earth's surface, followed by cementation.

Grain Size

The dimension of individual particles or crystals in a solid, often determining its texture.