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HotSprings Spas manufactures and sells two spa models: the Steamboat and the Classic. HotSprings Spas receives spa bodies from another manufacturer and then adds a pump and tubing to circulate the water. The Steamboat model demands 15.5 hours of labor and 14.5 feet of tubing. The Classic model requires 10.5 hours of labor and uses 20 feet of tubing. Based on selling patterns, the owner, Deborah Liebson, has determined that the Steamboat model generates a profit of $400 per unit, and each Classic model generates $345 profit. While Deborah would like a large labor capacity and sufficient tubing and motors to build any number of spas, her resources are limited. For the next production period, Deborah has 2,650 labor hours, 3,450 feet of tubing, and 231 pumps available. Deborah needs assistance in figuring out how many Steamboat and Classic models to build in order to maximize her profit. Given the constraints above, use Solver to assist Deborah in her what-if analysis. Deborah has provided you with a screen shot of a template you can use to get started: EXCEL.
Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..
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