Batch Size Decision: Constraints for Dalton Playground Equipment
Not what you're looking for?
PROBLEM 7-17. (Appendix) Batch Size Decision and Constraints
At Dalton Playground Equipment, the powder-coating process is a bottleneck. Typically, it takes approximately two hours to switch between jobs. The time is spent cleaning nozzles and paint tanks and recalibrating equipment. Currently the company runs relatively small batch sizes through the process but is considering increasing them to reduce setup time. With small batch sizes, powder coating can process approximately 2,000 units per 8-hour shift, and products have an average contribution margin of $50. With large batch sizes, powder coating can process approximately 2,300 units per 8-hour shift.
Required
a. Calculate the additional profit associated with running larger batch sizes through the powder-coating process.
b. What potential problems are created by the larger batch sizes?
Purchase this Solution
Solution Summary
The solution determines the constraints for Dalton playground equipment.
Solution Preview
At Dalton Playground Equipment, the powder-coating process is a bottleneck. Typically, it takes approximately two hours to switch between jobs. The time is spent cleaning nozzles and paint tanks and recalibrating equipment. Currently the company runs relatively small batch sizes through the process but is considering increasing them to reduce setup time. With small batch sizes, powder coating can ...
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Motivation
This tests some key elements of major motivation theories.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media