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IPP801 PRODUCTION AND OPERATIONS MANAGEMENT

ASSIGNMENT 1 (X Y PROBLEM)

STUDENT
GP SHALE
Student Nr - 13382978

LECTURER
DR PJ PRETORIUS

DATE
2014-03-20

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Question 1 Resource Loading

A: 84 x (15) + 66 x (24) = 2844 min
B: 84 x (8) + 66 x (8+15) = 2190 min
C: 84 x (11) + 66 x (8) = 2124 min
The demand on A exceeds is capacity, hence A is the constraint.
Question 2 Throughput Rate
Whatchamacallit
Selling Price per Unit (Rands)
Variable Cost per Unit (Rands)
Contribution Margin per Unit (Rands)
Constraint Time (minutes)
Throughput rate (Rands/minutes)

Thingamagin
g
48.57
100.45
8.10
23.18
40.47
77.27
15
24
2.70
3.22

Thingamaging is the most profitable since it makes profit faster than Whatchamacallit.
Question 3 Number of each Product to be made
Since Thingamaging is the most profitable, its quantities will have to be maximised.
Thingamaging maximum quantities = 66 units
Hence, making 66 quantities requires 66 x 24 = 1584 minutes
This leaves 2400 minutes 1584 minutes = 816 minutes to make Whatchamacallit.
Hence out of 816 minutes, only about 816 minutes / 15 minutes/units = 54.4 units, which is
approximately 54 units of Whatchamacallit.
Therefore,
Thingamaging = 66 units
Whatchamacallit = 54 units
Question 4 The maximum profit per week
NP = Vol x (SP VC) FC
Hence, NP = [54 x (48.57 8.10) + 66 x (100.45 23.18)] 5000
= [54 x 40.47 + 66 x 77.27] 5000
= [2185.38 + 5099.82] - 5000
= R 2285.20 per week