Question

Digital Imaging (DI) produces photo printers for both the professional and consumer markets. The DI consumer division recently introduced two photo printers that provide color prints rivaling those produced by a professional processing lab. The DI-910 model can produce a 4? × 6? borderless print in approximately 37 seconds. The more sophisticated and faster DI-950 can even produce a 13? × 19? borderless print. Financial projections show profit contributions of $42 for each DI-910 and $87 for each DI-950.

The printers are assembled, tested, and packaged at DI's plant located in New Bern, North Carolina. This plant is highly automated and uses two manufacturing lines to produce the printers. Line 1 performs the assembly operation with times of 3 minutes per DI-910 printer and 6 minutes per DI-950 printer. Line 2 performs both the testing and packaging operations. Times are 4 minutes per DI-910 printer and 2 minutes per DI-950 printer. The shorter time for the DI-950 printer is a result of its faster print speed. Both manufacturing lines are in operation one 8-hour shift per day.
Managerial Report

Perform an analysis for Digital Imaging in order to determine how many units of each printer to produce. Prepare a report to DI's president presenting your findings and recommendations. Include (but do not limit your discussion to) a consideration of the following:

1. The recommended number of units of each printer to produce to maximize the total contribution to profit for an 8-hour shift. What reasons might management have for not implementing your recommendation?

2. Suppose that management also states that the number of DI-910 printers produced must be at least as great as the number of DI-950 units produced. Assuming that the objective is to maximize the total contribution to profit for an 8-hour shift, how many units of each printer should be produced?

3. Does the solution you developed in part (2) balance the total time spent on line 1 and the total time spent on line 2? Why might this balance or lack of it be a concern to management?

4. Management requested an expansion of the model in part (2) that would provide a better balance between the total time on line 1 and the total time on line 2. Management wants to limit the difference between the total time on line 1 and the total time on line 2 to 30 minutes or less. If the objective is still to maximize the total contribution to profit, how many units of each printer should be produced? What effect does this workload balancing have on total profit in part (2)?

5. Suppose that in part (1) management specified the objective of maximizing the total number of printers produced each shift rather than total profit contribution. With this objective, how many units of each printer should be produced per shift? What effect does this objective have on total profit and workload balancing?

Answer 1

Report for Digital Imaging

Digital Imaging is a process of creating of photographic images.

The Digital Imaging (DI) produces photo printers for both the professional and consumer markets. The DI consumer division recently introduced two photo printers that provide color prints rivaling those produced by a professional processing lab. The DI-910 model can produce a 4? × 6? borderless print in approximately 37 seconds. The more sophisticated and faster DI-950 can even produce a 13? × 19? borderless print. Financial projections show profit contributions of $42 for each DI-910 and $87 for each DI-950.

This plant is highly automated and uses two manufacturing lines to produce the printers. Line 1 performs the assembly operation with times of 3 minutes per DI-910 printer and 6 minutes per DI-950 printer. Line 2 performs both the testing and packaging operations. Times are 4 minutes per DI-910 printer and 2 minutes per DI-950 printer. The shorter time for the DI-950 printer is a result of its faster print speed. Both manufacturing lines are in operation one 8-hour shift per day.

The recommended number of units of each printer to produce to maximize the total contribution to profit for an 8-hour shift.The management must use the line of high range of the production machinery and highly skilled labour to maximise the production of the items.

The managemnt must utilize its resources to its fullest so that the profitability coud be maximised.

The management must see and preapre a plan that recognizes which product is delivering high productivity and in turn profitability.A various statistical measures can be used to prepare a report about the production of the goods.Then the decision maximising the production of that product.