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A company manufacture a key 'make-to-stock' component for wholesale companies. Due the complexity of the component, each requires some customized processes. Recently, a wholesale company ask the company is they could manufacture 200 components. Record shows that, in each project/contract, the company could manufacture the second component in 180 minutes, and the fourth in 153 minutes. Also, manufacturing each component has an estimated cost of $3/minute.

a) Show how much time would it takes to manufactured all components.

b) If the maximum amount the wholesale company is willing to pay for all components is $52,000, and the company expect to make a 20% profit margin, show and explain if this is a feasible deal.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92485082

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