Digital Imaging (DI) produces photo printers for both theprofessional and consumer markets. The DI consumer divisionrecently introduced two photo printers that provide color printsrivaling those produced by a professional processing lab. TheDI-910 model can produce a 4? × 6? borderless print inapproximately 37 seconds. The more sophisticated and faster DI-950can even produce a 13? × 19? borderless print. Financialprojections 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 plantlocated in New Bern, North Carolina. This plant is highly automatedand uses two manufacturing lines to produce the printers. Line 1performs the assembly operation with times of 3 minutes per DI-910printer and 6 minutes per DI-950 printer. Line 2 performs both thetesting and packaging operations. Times are 4 minutes per DI-910printer and 2 minutes per DI-950 printer. The shorter time for theDI-950 printer is a result of its faster print speed. Bothmanufacturing lines are in operation one 8-hour shift perday.
Managerial Report
Perform an analysis for Digital Imaging in order to determinehow many units of each printer to produce. Prepare a report to DI'spresident presenting your findings and recommendations. Include(but do not limit your discussion to) a consideration of thefollowing:
1. The recommended number of units of each printer to produce tomaximize the total contribution to profit for an 8-hour shift. Whatreasons might management have for not implementing yourrecommendation?
2. Suppose that management also states that the number of DI-910printers produced must be at least as great as the number of DI-950units produced. Assuming that the objective is to maximize thetotal contribution to profit for an 8-hour shift, how many units ofeach printer should be produced?
3. Does the solution you developed in part (2) balance the totaltime spent on line 1 and the total time spent on line 2? Why mightthis 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 line1 and the total time on line 2. Management wants to limit thedifference between the total time on line 1 and the total time online 2 to 30 minutes or less. If the objective is still to maximizethe total contribution to profit, how many units of each printershould be produced? What effect does this workload balancing haveon total profit in part (2)?
5. Suppose that in part (1) management specified the objectiveof maximizing the total number of printers produced each shiftrather than total profit contribution. With this objective, howmany units of each printer should be produced per shift? Whateffect does this objective have on total profit and workloadbalancing?
