Question: Capacity Management with Multiple Types of Flow Units Consider the figure above, which outlines the processing time, material and purchased part requirements as well as the weekly demands and selling prices of three products A, B and C a firm produces by using four resources W, X, Y, Z. Each of the four resou rces is staffed with one worker, and the plant operates for 40 hours per week. Weekly overhead cost is $8,000.
(b) Assuming an inflexible labor rate of $10/hr, find the production plan that results from the traditional method and the bottleneck -based methods , and calculate the weekly profit for each method.
(c) Repeat part (a) assuming a flexible rate of $15/hr.