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- This topic has 7 replies, 2 voices, and was last updated 6 years ago by John Moffat.
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- November 10, 2017 at 4:00 pm #415116
Hello John,
I was working out D16 Q Sweet treats bakery.
Part b : Optimum production Plan.
After ranking Cupcakes have the first rank Brownies second and Muffins third.
Mixing has 120 minutes available and thats bottleneck as per the Q.Now the optimum plan, I can’t get it right for some reason.
0.6 min are available for 1 unit of cupcakes (12 min /20 batch size) That makes them produce all 100 units. I am assuming since optimum plan is maximising profit , we should take maximum demand .That leaves us with 60 minutes. Cant produce all 140 of brownies. Therefore 60min / 0.5 = 120 units and 0 muffins. However answer says 80 brownies 30 muffins and 100 cupcakes. can you please help me with this.
Thanks
November 10, 2017 at 6:38 pm #415158Please can you check you have the correct the exam. The only December 2016 exam on the ACCA website is the computer based exam, and that does not seem to contain a question called Sweet Treats Bakery 🙂
November 12, 2017 at 4:44 am #415314I assume thats a cbe qs. found it in a revision kit.
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 follow s:
Brownies Muffins Cupcakes
Batch size (units) 40 30 20
Selling price ($ per unit) 1.50 1.40 2.00
Material cost ($ per unit) 0.25 0.15 0.25
Labour cost ($ per unit) 0.40 0.45 0.50
Overhead ($ per unit) 0.15 0.20 0.30
Minimum daily demand (units) 30 20 10
Maximum daily demand (units) 140 90 100The minimum daily demand is required for a long-term contract with a local cafe 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 120The 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.
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?
1) 80 brownies, 30 muffins and 100 cupcakes
2) 0 brownies, 90 muffins and 100 cupcakes
3) 120 brownies, 0 muffins and 100 cupcakes
4) 40 brownies, 60 muffins and 100 cupcakes
November 12, 2017 at 11:11 am #415384There is no point in typing out a complete question and expecting an answer!
You obviously have an answer in the Revision Kit and so you should ask about whatever it is in the answer that you are not clear about – then I will help you.
I assume, of course, that you have watched my free lectures on throughput accounting?
November 13, 2017 at 3:44 am #415468Hi John I have posted my query in the first post.
I got 120 brownies and 100 cupcakes with zero muffins.Part b : Optimum production Plan.
After ranking Cupcakes have the first rank Brownies second and Muffins third.
Mixing has 120 minutes available and thats bottleneck as per the Q.Now the optimum plan, I can’t get it right for some reason.
0.6 min are available for 1 unit of cupcakes (12 min /20 batch size) That makes them produce all 100 units. I am assuming since optimum plan is maximising profit , we should take maximum demand .That leaves us with 60 minutes. Cant produce all 140 of brownies. Therefore 60min / 0.5 = 120 units and 0 muffins. However answer says 80 brownies 30 muffins and 100 cupcakes. can you please help me with this.
Thanks
November 13, 2017 at 10:33 am #415519The question says that the minimum daily demand must be met.
Therefore they have to produce 30 brownies, 20 muffins, and 10 cupcakes, whatever happens – your answer produces zero muffins which obviously cannot possibly be correct!!
It is only after producing the minimum demand that you decide how to use the remaining time, ranking in order of the throughput return.
November 13, 2017 at 12:01 pm #415543Got it Thanks a ton !!
November 13, 2017 at 7:30 pm #415613You are welcome 🙂
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