Explain principles for determining product mix, Operation Management

Assignment Help:

The senior management at Canine Kernels Company CKC is concerned with the existing capacity limitations so they want to accept the mix of orders that maximizes the company's profits. Traditionally, CKC has utilized a method whereby decisions are made to produce as much of the product with the highest contribution margin as possible (up to the limit of its demand), followed by the next highest contribution margin product, and so on until no more capacity is available. Because capacity is limited, choosing the proper product mix is crucial. Troy Hendrix, the newly hired production supervisor, is an avid follower of the theory of constraints philosophy and the bottleneck method of scheduling. He believes that profitability can indeed be approved if bottleneck resources are exploited to determine product mix.

A, What is the profit if the traditional contribution margin method is used for determining CKC's product mix?

B. What is the profit if the bottleneck method advocated by Troy is used for selecting the product mix?

C. Calculate the profit gain, both in absolute dollars as well as in absolute dikkars as well as in terms of percentages gains, by tying TOC principles for determining product mix.


Related Discussions:- Explain principles for determining product mix

Explain how efficiency of purchasing processes be improved, How can efficie...

How can efficiency of purchasing processes be improved?

Explain why is it important to try to fill in the gaps, When interviewing, ...

When interviewing, why is it important to try to fill in the gaps in a candidate's employment history?

Explain unsecured credit and secured credit, Compare and contract unsecured...

Compare and contract unsecured credit and secured credit, and explain the key differences.

Situational Leadership Theory, Describe possible gaps you observe within Si...

Describe possible gaps you observe within Situational Leadership Theory. What strategies or adjustments in your own behavior, thinking, or worldview might you consider or employ to

Describe job openings in advertising in a global scale, Compare local Ohio ...

Compare local Ohio advertising jobs to job openings in advertising in a global scale sumerize there result.

Linear Programming , A paper mill produces two grades of paper viz., X and ...

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

Explain is self-preservation a moral imperative, Is self-preservation a mor...

Is self-preservation a moral imperative or just a fact?

Explain corporate strategic alliance, Business-level, Corporate-level, and ...

Business-level, Corporate-level, and International Strategies Using the Internet, research about the following: • Globalization • International strategic alliances • Co

Successful writing at work, Ask qu Write an appropriate proposal—internal, ...

Ask qu Write an appropriate proposal—internal, solicited sales, or unsolicited sales—based on the information contained in one of the following two articles. Assume that your or yo

Case study, what is continuous improvements

what is continuous improvements

Write Your Message!

Captcha
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!

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