Case Problem 1 Chapter 3

1089 words 5 pages
MEMO
TO: Dr. Norman E. Pence
FROM: Mary Nicole Porter
DATE: September 11, 2013
SUBJECT: Chapter 2 Case Problem 1: Workload Balancing

Digital Imaging: Balancing Photo Printer Production

Digital Imaging, a company that produces photo printers, recently introduced two models of printers into the average consumer market: the DI-910, and the more sophisticated and faster DI-950. Analysis shows that management can expect profit contributions of $42 for each DI-910 and $87 for each DI-950 produced. Both models are assembled in an automated plant using two production lines. Production line 1 allocates 3-minutes per model DI-910 and 6-minutes per model DI-950 produced for assembly. Line 2 allocates 4-minutes to each DI-910 and
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The total profit contribution would lower to $6815. Line 1 would still be operational for the full 8-hour shift, but line 2 would only be non-operational for 30-minutes.

Task – 5 Changing Digital Imaging’s Objectives

If management wanted the objective to be maximizing the total number of printers produced per 8-hour shift rather than maximizing total profit contribution; 107 of model DI-910 printers and 26 of model DI-950 printers would need to be produced every shift. Changing this goal would decrease the total profit contribution to $133.33 per shift. Also, lines 1 and 2 would be fully operational for the entire 8-hour shift (zero lag time).

Conclusion and Analysis

In conclusion, in order to maximize total profit contribution per 8-hour shift, it is recommended to produce zero (0) model DI-910 printers and 80 model DI-950 printers. This may not be practical from a management, accounting, marketing, or consumer perspective. Therefore, if you were to place a demand requirement stating that the amount of DI-910 printers produced per 8-hour shift must be at least as much as the amount of DI-950 printers produced, you would almost create an

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