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Case-embassy motorcycles

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Reference no: EM133040676

Embassy Motorcycles (EM) manufactures two lightweight motorcycles designed for easy handling and safety. The EZ-Rider model has a new engine and a low profile that make it easy to balance. The Lady-Sport model is slightly larger, uses a more traditional engine, and is specifically designed to appeal to women riders. Embassy produces the engines for both models at its Des Moines, Iowa, plant. Each EZ-Rider engine requires 6 hours of manufacturing time and each Lady-Sport engine requires 3 hours of manufacturing time. The Des Moines plant has 2100 hours of engine manufacturing time available for the next production period. Embassy's motorcycle frame supplier can supply as many EZ-Rider frames as needed. However, the Lady-Sport frame is more complex and the supplier can only provide up to 280 Lady-Sport frames for the next production period. Final assembly and testing requires 2 hours for each EZ-Rider model and 2.5 hours for each Lady-Sport model. A maximum of 1000 hours of assembly and testing time are available for the next production period. The company's accounting department projects a profit contribution of $2400 for each EZ-Rider produced and $1800 for each Lady-Sport produced.

1. How many EZ-Riders should be produced?

2. How many Lady Sports should be produced?

3. How many Lady Sports are left not produced?

4. How much Engine time is left unused?

5. What is the total profit?

6. By how much can the profit on EZ-Riders increase before the solution would change?

7. To what value can the profit on Lady Sports increase before the solution would change?

8. By how much can Assembly & Testing time increase before there is a change in the dual (shadow) price?

9. You are given some additional time for Engine time that will increase the demand constraint from 2100 to 2400 for a total cost of $50,000. Would you say yes or no? Explain.

10. If Engine decreases by 100 and Assembly and Testing increases by 50, should the solution be rerun? Explain.

11. If Engine increases by 750 and Assembly and Testing decreases by 150, should the solution be rerun? Explain.

Reference no: EM133040676

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