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- June 24, 2024 at 6:30 pm #707593
Hello,
I have difficulty getting the working from the answer on one particular question in PM book from Kaplan. The question is as follows:
After each manufacture, each heater has to go through 3 processes: Assembly, Quality Control and Packaging. The following information is available for the 3 heaters:
Alpha Beta Gamma
Sales price per unit $2.0 $2.25 $1.75
Direct material cost per unit $0.50 $0.81 $0.35
Direct labour cost per unit $0.30 $0.60 $0.50
Machine time per unit:
Assembly (in minutes) 2 3 2.5
Quality Control (in minutes) 3 4 2
Packaging (in minutes) 4 5 3
Weekly sales demand (units) 1,000 1,500 850Operating expenses, including labour, are $4,500. The maximum hours available for the machines are 150 hours (Assembly), 170 hours (Quality Control) and 250 hours (Packaging).
In first step i know i need to identify the bottleneck and to be able to do so i need to calculate the hours required for maximum production. Total demand would be 3,350 units (1,000 for Alpha + 1,500 for Beta + 850 for Gamma). The maximum machine hours available on Assembly are 150 hours (9,000 minutes). The time it takes to assemble all the units would be 7.5 minutes per unit (2 min. for Alpha + 3 min. for Beta + 2.5 min. for Gamma).
The answer given for Assembly hours needed for maximum production states 143.75 hours and i cannot come to this figure, however, I try. Similarly answer given for Quality Control and Packaging for hours needed for maximum production are: 178.33 and 234.17 respectively.
Would you be able to assist with the detail on how to approach the calculation for Assembly hours needed for maximum production?
Many thanks
June 24, 2024 at 11:14 pm #707594Calculate the total assembly time required for each product:
Units * mins
Alpha 1000u * 2 = 2000
Beta 1500u * 3 = 4500
Gamma 850 * 2.5 = 2125
Total 8625 minsAssembly time from mins to hrs
8625/60 mins per hour = 143.75
So you can calculate the hours needed for Quality Control and Packaging by following the same steps for each process.June 25, 2024 at 11:03 am #707601Thank you so much.
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