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Throughput accounting

SSimran2y ago
A company manufactures a single product which is processed by 3 machines in a continuous process. Machines X, Y and Z are used in the process. The current maximum output capacity per month from each machine is given below: - Machine X 2,900 Units Machine Y 2,600 Units Machine Z 2,300 Units The company has an option to purchase machine Z @ $2,000,000 which would increase its capacity by 700 units per month. It can also purchase both the machines, Y and Z in combined offer that will cost a total of $ 3,000,000. If the offer is ignored then machine Y will individually cost $ 1,500,000. Machine Y will increase the output capacity by 600 Units. For producing and selling 1 more unit, $ 6,000 contribution is earned. Advice the company what decision shall it take? Should it buy either of the two machines or both the machines or should not buy any new machine?
IAW3005IAW3005Tutor2y ago#1
Please do not simply type out a full question and expect to be provided with a full answer. Unless you have been given this as an assignment (in which case you are surely not expecting us to do your homework for you), you must have an answer in the same book in which you found the question. So ask about whatever it is in the answer that you are not clear about and then I will explain. You can find everything needed to be able to answer this question in our free lectures. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
Tttlayur2y ago#2
Hello, I hope you can assist, Please i would like to find out how to calculate the total number of hours needed for maximum prduction here: Product A Assembly(in minutes) 2 Quality Control (in minutes) 3 Packaging (in minutes) 4 Weekly Sales demand 1000 units Product B Assembly(in minutes) 3 Quality Control (in minutes) 4 Packaging (in minutes) 2 Weekly Sales demand 1500 units Product C Assembly(in minutes) 2.5 Quality Control (in minutes) 2 Packaging (in minutes) 3 Weekly Sales demand 850 units Thanks
IAW3005IAW3005Tutor2y ago#3
Does it not give you the total available hours or minutes for Assembly, Quality Control, and Packaging I presume this is a bottleneck question ?
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