Last updated: June 13, 2019
Topic: BusinessCompany
Sample donated:

Digital Imaging: Balancing Photo Printer Production

Digital Imaging. a company that produces exposure pressmans. late introduced two theoretical accounts of pressmans into the mean consumer market: the DI-910. and the more sophisticated and faster DI-950. Analysis shows that direction can anticipate net income parts of $ 42 for each DI-910 and $ 87 for each DI-950 produced. Both theoretical accounts are assembled in an machine-controlled works utilizing two production lines. Production line 1 allocates 3-minutes per theoretical account DI-910 and 6-minutes per theoretical account DI-950 produced for assembly. Line 2 allocates 4-minutes to each DI-910 and 2-minutes to each DI-950 produced for packaging and testing. Lines 1 and 2 are merely in operation for one 8-hour displacement per twenty-four hours.

Undertaking 1 – Maximizing Total Profit Contribution with Time Constraints

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In order to maximise the entire net income part for an 8-hour displacement. it is recommended to bring forth 80 theoretical account DI-950 pressmans and nothing ( 0 ) theoretical account DI-910 pressmans. This would supply a entire net income part of about $ 6960 per displacement. Management may differ with these production recommendations. because nothing ( 0 ) production of theoretical account DI-910 pressmans may non sound appealing. The logical thinking for this may be that the DI-910 pressmans are the less sophisticated version of the two theoretical accounts and may be in higher demand by the consumer.

Possibly they are priced lower. or have more practical applications. which prevail to a wider market. Besides. bring forthing a zero sum of any merchandise would take to natural stuffs used in doing that merchandise ( depending on what type of stock list system they use ) edifice up in stock list. non being consumed in production. and making a cost accounting job.

Undertaking 2 – Maximizing Total Profit Contribution with Demand Constraints

If direction were to add a demand demand to these bing clip demands. saying that the figure of exemplary DI-910 pressmans produced must be at least every bit great as the figure of theoretical account of DI-950 pressmans produced. the optimum solution would alter to come close that 54 theoretical account DI-910 pressmans be produced and 53 theoretical account DI-950 pressmans be produced ( mathematically 53. 33 of each. but since at least as many DI-910 pressmans have to be made as DI-950 pressmans. rounding up the fractional sum should be attributed to the DI-910 pressmans to maintain within the 8-hour displacement resource restraint ) per 8-hour displacement. The entire net income part per 8-hour displacement would take down to $ 6880.

Undertaking 3 – Digital Imagination: Concerns with Production Line Efficiency

Adding the demand demand from Task 2 would non wholly equilibrate the entire clip spent on production lines 1 and 2. but it would do the clip spent on line 2 significantly more efficient. Before adding the demand demand. utilizing the suggested recommendations. direction would be looking at 5 1/3 hours of fresh ( lag clip ) on line 2 per 8-hour displacement. After adding the demand demand. there would merely be 2 2/3 hours of lag clip on line 2 per 8-hour displacement. This can be attributed to bring forthing more exemplary DI-910 pressmans after adding the demand. Obviously direction would desire to hold line 2 operating for as many hours as possible during and 8-hour displacement. and the fresh 2 2/3 hours would be a concern since it could be invested in something else straight lending to gain border. Line 1 would be runing for the full 8-hour displacement with or without the extra demand demand.

Undertaking 4 – Additional Constraints to Promote Production Line Efficiency

If direction were to implement an extra demand to equilibrate the entire clip spent on production lines 1 and 2. restricting the difference in entire clip to 30 proceedingss or less. but maintaining the ultimate end to maximise entire net income part per 8-hour displacement. 97 theoretical account DI-910 pressmans should
be produced and 31 theoretical account DI-950 pressmans should be produced. The entire net income part would take down to $ 6815. Line 1 would still be operational for the full 8-hour displacement. but line 2 would merely be non-operational for 30-minutes.

Task – 5 Changing Digital Imaging’s Aims

If direction wanted the aim to be maximising the entire figure of pressmans produced per 8-hour displacement instead than maximising entire net income part ; 107 of theoretical account DI-910 pressmans and 26 of theoretical account DI-950 pressmans would necessitate to be produced every displacement. Changing this end would diminish the entire net income part to $ 133. 33 per displacement. Besides. lines 1 and 2 would be to the full operational for the full 8-hour displacement ( zero slowdown clip ) .

Decision and Analysis

In decision. in order to maximise entire net income part per 8-hour displacement. it is recommended to bring forth nothing ( 0 ) theoretical account DI-910 pressmans and 80 theoretical account DI-950 pressmans. This may non be practical from a direction. accounting. selling. or consumer position. Therefore. if you were to put a demand demand saying that the sum of DI-910 pressmans produced per 8-hour displacement must be at least every bit much as the sum of DI-950 pressmans produced. you would about make an equilibrium of the sum of each pressman that would necessitate to be produced to 54 and 53 severally. The production times on lines 1 and 2 would non equilibrate. but efficiency would increase. because you would diminish the sum of slowdown clip on production line 2 from 5 1/3 hours to 2 2/3 hours per 8-hour displacement. Additionally. you would merely be diminishing the entire net income part from $ 6960 to $ 6880 per 8-hour displacement.

If direction were to put an extra demand to seek and equilibrate the entire clip spent on production lines 1 and 2. 97 and 31 units of theoretical account DI-910 and DI-950 would necessitate to be produced per displacement. which would merely take down the entire net income part to $ 6815. and would increase the efficiency of line 2 so that the slowdown clip would merely be 30-minutes per 8-hour displacement. Finally. if direction were to alter their aim of maximising net income part to maximising production of pressmans per 8-hour displacement. 107 of theoretical account DI-910 and 26 of theoretical account DI-950 pressmans would necessitate to be produced. the entire net income part would worsen to $ 133. 33 per displacement. but the production efficiency would increase so that lines 1 and 2 would be operational for the full displacement.