User Account

All Pages

About the production strategy

Assignment Help Operation Management
Reference no: EM131368751

Case Problem : Production Strategy.

Better Fitness, Inc. (BFI), manufactures exercise equipment at its plant in Freeport, Long Island. It recently designed two universal weight machines for the home exercise market. Both machines use BFI-patented technology that provides the user with an extremely wide range of motion capability for each type of exercise performed. Until now, such capabilities have been available only on expensive weight machines used primarily by physical therapists.

At a recent trade show, demonstrations of the machines resulted in significant dealer interest. In fact, the number of orders that BFI received at the trade show far exceeded its manufacturing capabilities for the current production period. As a result, management de- cided to begin production of the two machines. The two machines, which BFI named the BodyPlus 100 and the BodyPlus 200, require different amounts of resources to produce.

The BodyPlus 100 consists of a frame unit, a press station, and a pec-dec station. Each frame produced uses 4 hours of machining and welding time and 2 hours of painting and finishing time. Each press station requires 2 hours of machining and welding time and 1 hour of painting and finishing time, and each pec-dec station uses 2 hours of machining and welding time and 2 hours of painting and finishing time. In addition, 2 hours are spent assembling, testing, and packaging each BodyPlus 100. The raw material costs are $450 for each frame, $300 for each press station, and $250 for each pec-dec station; packaging costs are estimated to be $50 per unit.

The BodyPlus 200 consists of a frame unit, a press station, a pec-dec station, and a leg- press station. Each frame produced uses 5 hours of machining and welding time and 4 hoursof painting and finishing time. Each press station requires 3 hours of machining and welding time and 2 hours of painting and finishing time, each pec-dec station uses 2 hours of machin- ing and welding time and 2 hours of painting and finishing time, and each leg-press station requires 2 hours of machining and welding time and 2 hours of painting and finishing time. In addition, 2 hours are spent assembling, testing, and packaging each BodyPlus 200. The raw material costs are $650 for each frame, $400 for each press station, $250 for each pec-dec station, and $200 for each leg-press station; packaging costs are estimated to be $75 per unit.

For the next production period, management estimates that 600 hours of machining and welding time; 450 hours of painting and finishing time; and 140 hours of assembly, testing, and packaging time will be available. Current labor costs are $20 per hour for machining and welding time; $15 per hour for painting and finishing time; and $12 per hour for assembly, testing, and packaging time. The market in which the two machines must compete suggests a retail price of $2400 for the BodyPlus 100 and $3500 for the BodyPlus 200, although some flexibility may be available to BFI because of the unique capabilities of the new machines. Authorized BFI dealers can purchase machines for 70% of the suggested retail price.

BFI’s president believes that the unique capabilities of the BodyPlus 200 can help position BFI as one of the leaders in high-end exercise equipment. Consequently, she states that the number of units of the BodyPlus 200 produced must be at least 25% of the total production.

1. In what specific ways can using a linear programming model provide profit solutions in situations like this? What would your recommendation be on production quantities in regards to maximizing profits and why?

2. What other industries use a linear programming model to create a profit strategy? Find an example via internet searches.

Reference no: EM131368751

Questions Cloud

Innovative and strategic approach to logistics : Let’s now apply those concepts to Logistics, which is defined as “the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities.” What is a company that has impressed you with its inno..
What is strategic quality management : What is strategic quality management and how does it impact the project environment?
Understand although her fellows understood : In one speech event, one student did not understand although her fellows understood and the speaker was competent. Basing on your listening skills knowledge, show the possible 8 environment that might have caused her not to understand.
Hired an operations manager : You are the CEO and just hired an Operations Manager (first time), Where would put this person and why?? Please draw an organizational diagram that shows your organizational structure. You may product anthing you wish. Do not post - send input via em..
About the production strategy : Better Fitness, Inc. (BFI), manufactures exercise equipment at its plant in Freeport, Long Island. It recently designed two universal weight machines for the home exercise market. In what specific ways can using a linear programming model provide pro..
Transformational leaders are thought to transform : Recently, Liberia and Chile elected their first women presidents. Countries like Canada, UK, Germany, New Zealand, & Ireland as well as, Muslim majority countries like Indonesia, Pakistan, and Bangladesh have all had women as elected prime ministers,..
Advantages-disadvantages of letters that prospect for jobs : Why might it be more effective to apply for unsolicited jobs than for advertised jobs? Discuss the advantages and disadvantages of letters that “prospect” for jobs. Some employment authors claim that the paper resume is dead or dying. What’s behind t..
Find particularly relevant to your future career : Think about the information you learned in this class over this past semester. What topics did you find particularly relevant to your future career? How will you apply the knowledge gained in this course in your professional career? Please be specifi..
Cause more controversy than the passage of OSHA : There have been very few pieces of legislation on the Federal level to cause more controversy than the passage of OSHA. Has the Act accomplished what it was supposed to? Are there some changes that would be favored by small businesses in general?

Reviews

Write a Review

Operation Management Questions & Answers

  The greatest expected benefit of the least advantaged

How would our economy be assessed from the point of view of Rawls' difference principle? Can it be plausibly maintained that, despite poverty, our system works to “the greatest expected benefit of the least advantaged”? Is this an appropriate standar..

  Practice techniques for monitoring and control techniques

Select and defend your recommendation for best practice techniques for monitoring and control techniques to ensure a successful project. Consider your personal experience, research, and what you have learned in this course.

  What might happen if apple cannot recoup its losses

From a managerial perspective, what happened and why? Also, why is it so important for Apple to increase its market value? What might happen if Apple cannot recoup its losses? Thoughts on Director and Executive compensation at Apple?

  One can use a number of equations to examine a queuing

one can use a number of equations to analyze a queuing system e.g. average waiting time average length of the queue

  Firm save annually in ordering and carrying costs

A produce distributor uses 710 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once..

  Arrange the list into the best chronological sequence

Plan a party for 35 people and describe the type of documents or other communication needed to complete the task. Identify the nature of the group—family members, work colleagues, professional association. Arrange the list into the best chronological..

  Risk-averse decision maker

Option A has an expected value of $2,000, a minimum payoff of -$4,000, and a maximum payoff of $18,000. Option B has an expected value of $2,200, a minimum payoff of -$1,000, and a maximum payoff of $6,000. Option C has an expected value of $1,900, a..

  What kind of constraints would exist on the number of

a trading company in the middle ages transported tea spices and other oriental products via the overland trade route

  Compare and contrast test marketing and roll out

Compare and contrast test marketing and roll out. Describe two forms of roll out for a new vacuum cleaner. support your choice.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Producing chemical product has two alternative methods

A plan for producing a chemical product has two alternative methods. To produce the products Q1 and Q2, raw materials R1 and R2 must be mixed. In the first alternative, 7 tons of R1 and 5 tons of R2 are mixed to produce 2 tons of Q1 and 6 tons of Q2 ..

  Demonstrate learning in relation to theoretical management

An aspect of this week is the comprehensive question that serves as a capstone for the program. The question(s) provides you with the opportunity to demonstrate learning and competency in relation to theoretical and applied practices within hospit..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd