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P & Q Problem

This document presents a production problem involving two products, P and Q, each with different selling prices, market potentials, and production requirements. It describes the production process for each product including setup times, workers required and their skills and time needed. It also provides the total operating costs of the company and poses the question of determining the maximum weekly net profit or minimum loss the company is capable of earning.

Uploaded by

Sai Swaroop Mandal
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74 views2 pages

P & Q Problem

This document presents a production problem involving two products, P and Q, each with different selling prices, market potentials, and production requirements. It describes the production process for each product including setup times, workers required and their skills and time needed. It also provides the total operating costs of the company and poses the question of determining the maximum weekly net profit or minimum loss the company is capable of earning.

Uploaded by

Sai Swaroop Mandal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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P & Q Problem

Solve this problem.


Apply TOC to solve this problem.
P&Q
Perfect operation (no defects)
Same selling price to any clients
P Q Fixed market potential
$90/U $100/U Set-up times nil
100 U/week 50 U/week

4 workers (skills are not interchangeable):


1 worker with skill A
D D 1 worker with skill B
15 min./U 5 min./U
BOC 1 worker with skill C
$5/U
1 worker with skill D
C C B
10 min./U 5 min./U 15 min./U Each worker is available 5 days a week, 8
hours a day

A B A Total operating expenses of the company are


15 min./U 15 min./U 10 min./U $6000 per week (which includes salaries, and
everything else)

RM1 RM2 RM3


$20/U $20/U $20/U
Initial question:
What is the maximum net profit (or minimum loss) this
company is capable of earning per week?

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