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  • 1.  THEORIES OF CONSTRAINT

    Posted 05-29-2022 03:38 AM
    Dear Friends,

    I've got used to solve this kind of Theories of Constraint problems with only one constraint. But in this question it seems double constraint or there is distractor figures..So I am quite confused. 

    I'd much appreciate if anyone can help me ..
    Regards,

    Bakker Industries sells three products (Products 611, 613, and 615) that it manufactures in a factory consisting of one department. Both labor and machine time are applied to the products. Bakker's management is planning its production schedule for the next several months. There are labor shortages in the community. Some of the machines will be out of service for extensive overhauling. Available machine and labor time for each of the next 6 months is listed below.
    Monthly Capacity Availability
    Normal machine capacity in machine hours
    3,500
    Capacity of machines being repaired in machine hours
    (500)
    Available machine capacity in machine hours
    3,000
    Labor capacity in direct labor hours
    4,000
    Available labor in direct labor hours
    3,700
    Labor and Machine
    Specifications per Unit of Product
    Product
    Labor and Machine Time
    611
    Direct labor hours
    2
     
    Machine hours
    2
    613
    Direct labor hours
    1
     
    Machine hours
    1
    615
    Direct labor hours
    2
    Machine hours
    2
    The Sales Department's forecast of product demand over the next 6 months is presented below.
    Product
    Monthly Sales Volume (in units)
    611
    500
    613
    400
    615
    1,000
    Bakker's inventory levels will not be increased or decreased during the next 6 months. The unit price and cost data valid for the next 6 months are presented below.
    Product
    611
    613
    615
    Unit costs:
    Direct material
    $    7
    $  13
    $  17
    Direct labor
    12
    6
    12
    Variable overhead
    27
    20
    25
    Fixed overhead
    15
    10
    32
    Variable selling
    3
    2
    4
    Unit selling price
    $196
    $123
    $167
     
    Question9 If Bakker's strategy is to maximize dollar profits, how many units of product 615 will be produced?


    ------------------------------
    TIMUCIN ONER
    Director/Manager
    ANTALYA
    Turkey
    ------------------------------


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