Explain what is the profit if the bottleneck method advocate, 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 ying TOC principles for determining product mix.


Related Discussions:- Explain what is the profit if the bottleneck method advocate

Explain profits and time based competitiveness, Small businesses have been ...

Small businesses have been slower to integrate information technology into their operations than larger companies. Discuss the reasons for this state of affairs, identifying severa

Explain principles for determining product mix, The senior management at Ca...

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 profit

Explain vmi agreement, Why is information technology such an important elem...

Why is information technology such an important element when entering into a VMI agreement? Explain using examples from Eka Chemicals and Interfast.

E-business, E-Business, Knowledge Management and Globalisation of Services ...

E-Business, Knowledge Management and Globalisation of Services Development of supply chains not only in manufacturing but service companies; centralised decision making; exten

Explain task environment and general environment, The relationship between ...

The relationship between a task environment and general environment are best described as? 1. one way system: changes in the task environment affect the general environment but cha

Line balancing, What do you understand by “line balancing”?

What do you understand by “line balancing”?

System Analysis and Design, For a project, following information is given: ...

For a project, following information is given: Activity I.P Expected Time in Weeks A - 5 B - 6 C A 7 D A,

Analyzing a current OM technique, ind a scholarly journal article reporting...

ind a scholarly journal article reporting on one or more of the following techniques: business analytics, dashboards, decision support systems, predictive analytics, or supply chai

Explain what is the production, A local market research firm has just won a...

A local market research firm has just won a contract for several thousand small projects involving data gathering and statistical analysis. In the past, the firm has assigned each

List any three business areas in the umuc pizza shops, List three business ...

List three business areas and/or processes used in the UMUC Pizza shops that could be supported by an IT solution.

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