Question

he operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D). Two of his resources are constrained: production time, which is limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg, and profits for Dark beer are $2.00 per keg. For the production combination of 135 Lite and 0 Dark, which resource is slack (not fully used)?

Answer 1

The slack resource is the Production Time of 210 minutes.

What is a slack resource?

Slack resources are excess resources.  They are recognized as spare organizational capabilities and assets ready for use in productive activities.

Slack resources represent underutilized and hidden spare capacities and energies that a company can employ whenever it chooses or possesses other required resources to combine with the slack resource.

Data and Calculations:

Production time = 8 hours or 480 minutes per day

Malt extract = 675 gallons

                                  Lite (L)        Dark (D)

Production time          2 min         4 min

Malt extract                 5 gallons   3 gallons

Profits per keg          $3.00         $2.00

Required production 135 kegs

Total resources required:

Production time = 270 minutes (135 kegs x 2)  slack = 210 min (480 - 270)

Malt extract = 675 gallons (135 x 5) Slack = 0 min (675 - 675)

Thus, the slack resource is the Production Time of 210 minutes.

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