How much of each product should be produced

Assignment Help Operation Management
Reference no: EM13919178

Hart Manufacturing makes three products. Each product requires manufacturing opera- tions in three departments: A, B, and C. The labor-hour requirements, by department, are as follows:

Department

A

Product 1

1.50

Product 2

3.00

Product 3

2.00

B

2.00

1.00

2.50

C

0.25

0.25

0.25

During the next production period, the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are $25 for product 1, $28 for product 2, and $30 for product 3.

a. Formulate a linear programming model for maximizing total profit contribution.

b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution?

c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are $400 for product 1, $550 for product 2, and $600 for product 3. If the solu- tion developed in part (b) is to be used, what is the total profit contribution after tak- ing into account the setup costs?

d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3.

e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced, and what is the projected total profit contribution? Com- pare this profit contribution to that obtained in part (c).

Reference no: EM13919178

Questions Cloud

Comprehensive marketing plan researching : This week you will continue your comprehensive marketing plan researching the SAME company that you researched in Unit I. Again, utilizing the Online Library, you will research the various elements of the marketing plan as it relates to this compa..
How strong is your honda compared to the competition : How does the Honda Corporation position its products or services relative to its main competitors? What attributes does Honda use in its positioning/differentiation efforts? How strong is your Honda compared to the competition? How do you know?
Secure company-wide network infrastructure : The case study company (Soulmate Ventures) has expressed a desire to have a secure company-wide network infrastructure. Because the network has to revaluated from the beginning, the company wants to ensure that the new network has as many reasonab..
Method human service professional use to prevent child abuse : You are working as a school counselor in an elementary school in a rural community. You are also on the city council and are involved in your local faith-based community. As such, you know most people in the community.
How much of each product should be produced : Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution?
Global financing and exchange rate : Choose one of the following topics. Prepare a minimum 1,050 word paper in which you analyze one of the following global financing and exchange rate topics:
Discuss has lenovo differentiates its products in the market : Discuss how Lenovo can use Thinkpad to build the Lenovo brand without hurting the Thinkpad brand. Discuss how Lenovo should position itself: As a new Chinese company? A combination of East and West? An international firm? Why?
Statistical methods from week theory : Research and describe at least 2 statistical methods from this week's theory In your paper, explain how statistical analysis is utilized in quality control/assurance Why is knowing statistical analysis an important skill to learn for managers and lea..
Received semiannual interest on the french broad bonds : Accrued 750 interest on the Buncombe Co. Bonds. Dec 31 Accrued 1400 interest on the French Broad bonds. 2015 Feb 1. Received semiannual interest on the Buncombe Co. Bonds. March 1. Received semiannual interest on the French Broad bonds. Journalize th..

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

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..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd