sert besignLayout References Mailings Review View Times New

sert besignLayout References Mailings Review View Times New R 14 AA Bi | ?.dee x2 x\'i A.\'.?.?? Healthcare Partners is a small private manufacturer of medical supplies for patients with chronic health conditions. They specialize in personal measuring devices that can be used to automatically upload readings to the Internet where doctors can monitor patients\' results. One device, BPress, which measures blood pressure sells for $60 a unit and a second device, BGluc, which measures blood glucose sells for $120 a unit. Current monthly demand for these products is 3,000 units for BPress and 1,500 units for BGluc, Production data for the two products is as follows BGlue Available (min) BPress (min) Hours Process 1. Assemble devices 2. Test& program computer chip 3. Install other components 4. Perform final assembly & test 14 960 200 360 240 240 2,000 . Pack & ship Total Demand (uniks) 20 3000 30 1,500 Electronic components for BPress and BGluc cost $30 per unit for each device. In addition, BGluc requires special supplies costing S45 per unit. Assume that labor for each process is specialized and cannot be moved from one activity to another and that Healtheare Partmers cannot increase capacity of these processes in the short run. 5. The critical constraint process is: A. Process 1. Assemble devices B. Process 2. Test and program computer chip C. Process 3. Install other components D. Process 4. Perform final assembly and test E. Process 5. Pack and ship 6. What is the throughput velocity for BGluc on the critical constraint process? A. $10.00 per minute B. $7.50 per minute C. $30 per unit D. $45 per unit

Solution

B Press B Gluc TOTAL A B=(A*3000)/60 C D=(C*1500)/60 E=B+D F G=E/F time per unit(min.) Total time required(hours) time per unit(min.) Total time required(hours) Capacity Required Capacity Available Capacity utilization 1 Assemble Device 11 550 14 350 900 900 1 2 Test and program computer chip 0 3 75 75 200 0.375 3 Install other component 4 200 4 100 300 360 0.833333 4 Perform final analysis and test 3 150 6 150 300 240 1.25 5 Pack and ship 2 100 3 75 175 240 0.729167 Critical Constraint Operation is: D: Process 4 Perform final assembly and test Throughput velocity of B Glue on critical constraint process 10 per hour (60/6) 8 Cost of goods sold=Beginning Inventory+Purchase -Ending Inventory Cost of goods sold=Purchase +(Beginning Inventory-Ending Inventory) Beginning Inventory $22,000 Ending Inventory $14,000 (Beginning inventory -Ending Inventory) $8,000 Beginning and ending inventories are ignored Hence Cost of goods sold is reported less by $8000 Hence Net Income is reported more by $8000 Answer: b. Overstated by $8,000