Case problem 2
Iletha Miller
QMB 5355
Robert Miner
November 22, 2015
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, Case problem 2 2
Case Problem 2 – Production Strategy
Better Fitness, Inc. (BFI) manufactures exercise equipment at its plant in Freeport, Long
Island. It recently designed two universal weight machines for the home exercise market. Both
machines use BFI-patented technology that provides the user with an extremely wide range of
motion capability for each type of exercise performed. Until now, such capabilities have been
available only on expensive weight machines used primarily by physical therapists.
At a recent trade show, demonstrations of the machines resulted in significant dealer
interest. In fact, the number of orders that BFI received at the trade show far exceeded its
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manufacturing capabilities for the current production period. As a result, management decided to
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begin production of the two machines. The two machines, which BFI named the Body Plus 100
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and the BodyPlus 200, require different amounts of resources to produce.
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The BodyPlus 100 consists of a frame unit, a press station, and a pec-dec station. Each
frame produced uses 4 hours of machining and welding time and 2 hours of painting and
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finishing time. Each press station requires 2 hours of machining and welding time and 1 hour of
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painting and finishing time, and each pec-dec station uses 2 hours of machining and welding
time and 2 hours of painting and finishing time. In addition, 2 hours are spent assembling,
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testing, and packaging each BodyPlus 100. The raw material costs are $450 for each frame, $300
for each press station, and $250 for each pec-dec station; packaging costs are estimated to be $50
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per unit.
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The BodyPlus 200 consists of a frame unit, a press station, a pec-dec station, and a leg-
press station. Each frame produced uses 5 hours of machining and welding time and 4 hours of
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painting and finishing time. Each press station requires 3 hours machining and welding time and
2 hours of painting and finishing time, each pec-dec station uses 2 hours of machining and
This study source was downloaded by 100000805705997 from CourseHero.com on 04-28-2021 01:23:41 GMT -05:00
https://www.coursehero.com/file/12881456/IlethaMiller-QMB5355-12-week-6doc2/