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    P & Q Problem

    Uploaded by

    Sai Swaroop Mandal
    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.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    P & Q Problem

    Uploaded by

    Sai Swaroop Mandal
    49 views2 pages
    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.

    Original Description:

    im

    Original Title

    P & Q Problem (1) (1)

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    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.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    49 views2 pages

    P & Q Problem

    Uploaded by

    Sai Swaroop Mandal
    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.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 2

    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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