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Hi sir: Question – After manufacture, each heater has to go through three processes:
‘Assembly’, ‘Quality Control’ and ‘Packaging’. The following
information is available for the three heaters:
Alpha Beta Gamma
Sales price per unit $2.00 $2.25 $1.75
Direct materials 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
Pa After manufacture, each heater has to go through three processes:
‘Assembly’, ‘Quality Control’ and ‘Packaging’. The following
information is available for the three heaters:
Alpha Beta Gamma
Sales price per unit $2.00 $2.25 $1.75
Direct materials 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 1,000 units 1,500 units 850 unitsOperating expenses, including labour, are $4,000. The maximum
hours available for the machines are 150 hours (Assembly), 170
hours (Quality Control) and 250 hours (Packaging).As per the answer : The ‘Assembly’ hours needed for maximum production are 143.75.
This is less than the 150 hours available. The ‘Quality Control’ hours
needed for maximum production are 178.33, which is greater than
the 170 hours available. So, ‘quality control hours’ is the limiting
resource/bottleneck. The ‘Packaging’ hours needed for maximum
production are 234.17. This is less than the 250 hours available.
my question is how they calculate the quality control time left (minutes) 8500?The throughput returns per minute of quality control are A: $0.50; B: $0.36, and G: $0.70
Therefore they will make 850 of G (the maximum demand) and this will take 850 x 2 = 1,700 minutes. They will then make 1,000 of A which will take 1,000 x 3 = 3,000 minutes.
Given that the total quality control time available is 170 x 60 = 10,200, it means that they are left with 10,200 – 1,700 – 3,000 = 5,500 minutes, and they will use this to make 137.5 units of B.
I have no idea where 8,500 comes from in the answer. Unless they have made a mistake it would seem that maybe you either mistyped part of the question or left out some other information from the question.
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