ures a mix of afford 15. Yost-Perry Industries (YPI) manufact able guitars (A, B
ID: 377776 • Letter: U
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ures a mix of afford 15. Yost-Perry Industries (YPI) manufact able guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The on tion is a batch process with small setup times that ca considered negligible. The product information (price weekly demand, and processing times) and process sequences are shown in Figure 7.11. Raw materials and n be purchased parts (shown as a per-unit consumption rate are represented by inverted triangles. YPI is able to make and sell up to the limit of its demand per week with no penalties incurred for not meeting the full demand. Each workstation is staffed by one highly skilled worker dedi cated to work on that workstation alone and is paid $15 er hour. The plant operates one 8-hour shift per day and operates on a 5-day work week (i.e., 40 hours of produc- tion per person per week). Variable overhead costs are $9,000/week. Which of the four workstations, W, X, Y, or Z, has the highest aggregate workload, and thus serves as the bottleneck for Yost-Perry Industries?Explanation / Answer
Aggregate workload of W = 12*50+9*80+20*60 = 2520 minutes
Aggregate workload of X = 10*50+0*80+10*60 = 1100 minutes
Aggregate workload of Y = 0*50+15*80+5*60 = 1500 minutes
Aggregate workload of Z = 12*50+10*80+0*60 = 1400 minutes
Aggregate workload of W is highest (2520 minutes) . Therefore, it is the bottleneck.
A B C Demand 50 80 60 Processing time Aggregate Workload W 12 9 20 2520 X 10 0 10 1100 Y 0 15 5 1500 Z 12 10 0 1400Related Questions
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