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Bottleneck process (Kaplan 240.2)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Bottleneck process (Kaplan 240.2)

  • This topic has 0 replies, 1 voice, and was last updated 2 hours ago by Aynur02.
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  • August 16, 2025 at 5:17 pm #718781
    Aynur02
    Participant
    • Topics: 19
    • Replies: 19
    • ☆

    Hello dear tutor, I have a long question. Even though I try every time, I cannot understand the process. Could you please explain it to me in a simple way? I would really appreciate it.

    Sweet Treats Bakery makes three types of cake: brownies, muffins and cupcakes. The costs,
    revenues and demand for each of the three cakes are as follows:
    ………………………………………Brownies …………..Muffins ………….Cupcakes
    Batch size (units) ……………….. 40……………………30…………………..20
    Selling price ($ per unit) ……. 1,5 …………………. 1,4 …………………..2
    Material cost ($ per unit) ….. 0,25 ……………….. 0,15 ………………. 0,25
    Labour cost ($ per unit) ……. 0,40 ……………….. 0,45 ………………. 0,50
    Overheads ($ per unit) …….. 0,15 ………………… 0,20 ………………. 0,30
    Minimum daily demand (units)..30………………..20……………………10
    Maximum daily demand (units)..140………………90…………………..100

    The minimum daily demand is required for a long-term contract with a local café and must
    be met.

    The cakes are made in batches using three sequential processes: weighing, mixing and
    baking. The products must be produced in their batch sizes but are sold as individual units.
    Each batch of cakes requires the following amount of time for each process:
    ………………………………………Brownies ……….Muffins ………….Cupcakes
    Weighing (minutes) ………….. 15…………………15…………………..20
    Mixing (minutes) ……………….. 20……………….. 16…………………..12
    Baking (minutes) ……………… 120……………….. 110………………. 120

    The baking stage of the process is done in three ovens which can each be used for eight hours
    a day, a total of 1,440 available minutes. Ovens have a capacity of one batch per bake,
    regardless of product type.
    Sweet Treats Bakery uses throughput accounting and considers all costs, other than material,
    to be ‘factory costs’ which do not vary with production.

    QUESTION:
    On Wednesday, the mixing process is identified as the bottleneck process. On this day,
    only 120 minutes in the mixing process are available.
    Assuming that Sweet Treats Bakery wants to maximise profit, what is the optimal
    production plan for Wednesday?

    A) 80 brownies, 30 muffins and 100 cupcakes
    B) 0 brownies, 90 muffins and 100 cupcakes
    C) 120 brownies, 0 muffins and 100 cupcakes
    D) 40 brownies, 60 muffins and 100 cupcakes

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