Better products, Inc., manufactures three products on two machines Question # 00602927 Subject: Education Due on: 07/11/2019 Posted On: 07/11/2019 07:05 AM Tutorials: 1 Rating: 5.0/5
Better products, Inc., manufactures three products on two
machines. In a typical week, 40 hours are available on each machine. The profit
contribution and production time in hours per unit are as follows:
Product 1: Product 2: Product 3:
Profit/unit $30 $50 $20
machine 1 time/unit 0.5 2.0 0.75
machine 2 time/unit 1.0 1.0 0.5
Two operators are required for machine 1; thus, 2 hours of
labor must be scheduled for each hour of machine 1 time. Only one operator is
required for machine 2. A maximum of 100 hours of labor is available for
assignment to the machines during the coming week. Other production
requirements are that product 1 cannot account for more than 50% of the units
produced and that product 3 must account for at least 20# of the units
produced.
a. How many units of each product should be produced to
maximize total profit contribution? What is the projected weekly profit
associated with your solution?
b. How many hours of production time will be scheduled on
each machine?
c. What is the value of an additional hour of labor?
d. Assume that labor capacity can be increased to 120 hours.
Would you be interested in using the additional 20 hours available for this
resource? Develop the optimal product mix, assuming that the extra hours are
made available.
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