Western Chassis produces high-quality polished steel and aluminum sheeting and two lines of industrial chassis for the rack mounting of Internet routers, modems, and other telecommunications equipment. The contribution margin (contribution toward profit) for steel sheeting is $0.40 per pound and for aluminum sheeting is $0.60 per pound. Western earns $12 contribution on the sale of a Standard chassis rack and $15 contribution on a Deluxe chassis rack. During the next production cycle, Western can buy and use up to 25,800 pounds of raw unfinished steel either in sheeting or in chassis. Similarly, 20,400 pounds of aluminum are available. One standard chassis rack requires 16 pounds of steel and 8 pounds of aluminum. A Deluxe chassis rack requires 12 pounds of each metal. The output of metal sheeting is restricted only by the capacity of the polisher. For the next production cycle, the polisher can handle any mix of the two metals up to 4,000 pounds of metal sheeting. Chassis manufacture can be restricted by either metal stamping or assembly operations; no polishing is required. During the cycle no more than 2,500 total chassis can be stamped, and there will be 920 hours of assembly time available. The assembly time required is 24 minutes for the Standard chassis rack and 36 minutes for the Deluxe chassis rack. Finally, market conditions limit the number of Standard chassis racks sold to no more than 1,200 Standard and no more than 1,000 Deluxe. Any quantities of metal sheeting can be sold. Develop a Report for the following using Solver application in Excel 4) Obtain a sensitivity report for the reported solution. Which constraints are binding? 5) What is the incremental contribution associated with adding an hour of assembly time? Over what range of increase is the marginal value valid? 6) What is the value of additional capacity on the polisher? How much increase and decrease in this capacity is possible before a change occurs in the optimal production schedule?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Western Chassis produces high-quality polished steel and aluminum sheeting and two lines of
industrial chassis for the rack mounting of Internet routers, modems, and other telecommunications
equipment. The contribution margin (contribution toward profit) for steel sheeting is $0.40 per pound
and for aluminum sheeting is $0.60 per pound. Western earns $12 contribution on the sale of a
Standard chassis rack and $15 contribution on a Deluxe chassis rack. During the next production
cycle, Western can buy and use up to 25,800 pounds of raw unfinished steel either in sheeting or in
chassis. Similarly, 20,400 pounds of aluminum are available. One standard chassis rack requires 16
pounds of steel and 8 pounds of aluminum. A Deluxe chassis rack requires 12 pounds of each metal.
The output of metal sheeting is restricted only by the capacity of the polisher. For the next production
cycle, the polisher can handle any mix of the two metals up to 4,000 pounds of metal sheeting. Chassis
manufacture can be restricted by either metal stamping or assembly operations; no polishing is
required. During the cycle no more than 2,500 total chassis can be stamped, and there will be 920
hours of assembly time available. The assembly time required is 24 minutes for the Standard chassis
rack and 36 minutes for the Deluxe chassis rack. Finally, market conditions limit the number of
Standard chassis racks sold to no more than 1,200 Standard and no more than 1,000 Deluxe. Any
quantities of metal sheeting can be sold.
Develop a Report for the following using Solver application in Excel
4) Obtain a sensitivity report for the reported solution. Which constraints are binding?
5) What is the incremental contribution associated with adding an hour of assembly time?
Over what range of increase is the marginal value valid?
6) What is the value of additional capacity on the polisher? How much increase and decrease in
this capacity is possible before a change occurs in the optimal production
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