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DEC 16
Sweet treats bakery
Throughput per unit its same for Brownies (1.5-.25) $1.25 and (1.40-.15) $1.25 Muffins except cupcakes (2-.25) $1.75 what to do in this kind of situation (how to rank them) in the Kaplan kit they have taken total throughput and divided by bottleneck process and then they have ranked it I am confused why they have taken total throughput instead?
thanks !I do not have the Kaplan Kit (only the BPP Kit) and so I cannot comment on what they have done.
They should be ranked by the return per factor hour in mixing.
For Brownies this is (1.50 – 0.25) / ((20/60)/40) = 150
For Muffins this is (1.40 – 0.15) / ((16/60)/30) = 140.625
For cupcakes this is (2 – 0.25) / ((12/60)/20) = 175Therefore they are ranked Cupcakes, then Brownies, then Muffins.
However, of course, the maximum demand for cupcakes is 100. This would ‘use up’ 100/20 x 12 = 60 minutes.
The have to make 20 Muffins (the minimum demand) but because they have to be produced in batches, they must make at least 1 batch of 30 units. This ‘uses up’ another 16 minutes.This leaves 120 – 60 – 16 = 44 minutes of mixing, which will be used to make Brownies and is enough to make 2 batches (taking 40 minutes). 2 batches is 80 units of Brownies.
For calculation of factory hour don’t we divide “throughput per unit by Products time on bottleneck resource”?
and sir don’t we use throughput accounting ratio for ranking normally?
1.50-0.25=1.25 is throughput per unit I get it and by 20/60 we found time in hour from minutes what I didn’t understand why you divided it by 40 thanksYes – we divide the throughput per unit by the time in the bottleneck resource, and that is what I have done in my previous post.
Yes – we normally rank by TPAR, but since the TPAR is the return per factor hour divided by the cost per factory hour (which is the same in each case), ranking by throughput per unit gives exactly the same ranking always.
I divided by 40 because the times given are per batch, and if we are using the throughput per unit then we need the time per unit 🙂
Another thing sir its given that there is minimum demand that must be completed that’s 30, 20, 10 for the products kindly guide me regarding to these?
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