Homework answers / question archive / Case facts for an operating system:Activities 1 -3 require 10 min/unit of product It has 9 different activities   Activities 4- 9 require 5 min/unit of product It has 3 resources Two of them are employees in the organization and the third resource is equipment

Case facts for an operating system:Activities 1 -3 require 10 min/unit of product It has 9 different activities   Activities 4- 9 require 5 min/unit of product It has 3 resources Two of them are employees in the organization and the third resource is equipment

Operations Management

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Case facts for an operating system:Activities 1 -3 require 10 min/unit of product

• It has 9 different activities

•  
• Activities 4- 9 require 5 min/unit of product
• It has 3 resources
• Two of them are employees in the organization and the third resource is equipment. There is a total availability of 2400 minutes per week or 40 hrs./ week per resource.
• First resource is Sam - experienced operator with 10 years on the job. He's responsible for activities 1 -3. Works for 40 hours/week.
• Second resource is Emily - experienced operator with 15 years on the job. She's responsible for activities for 4 -6. Works for 40 hours/week.
• Third resource is specialized equipment, "The Machine". Responsible for activities 7-9. Works for 40 hours/week.
• There are 3 jobs in the mix. Each job requires a different set of activities to be performed on them to be produced.
• Job A
• Requires activities 4, 8, 9 (Resources are Emily and "The Machine")
• Requires minimal activities
• Job B
• Requires activities 1, 2, 3, 5, 6, 7, 8 (All resources required)
• Requires quite a bit of activities except 4 and 9
• Job C
• Requires activities 2, 3, 4, 5, 6, 7, 8, 9 (All resources required)
• Requires all activities except 1
• Weekly demands and profit margins for each job are different from one another.

• Question:
• Given this information, which product mix would maximize revenue? Analyze and provide answer an answer for each of the below scenarios.
• Scenario 1 - The demand in units/week is the maximum demand for each product in the week. (Cannot exceed demand)
• Scenario 2 - The demand in units/week is the forecasted demand for each product in a given week, you can exceed the demand. (Can exceed demand)