User Account

All Pages

How should the company operate in order to maximize

Assignment Help Operation Management
Reference no: EM131954962

Solve by linear programming (LP) - Formulation only (Setup the problem)!

variables, goal, and subject to constraints

A company has a permit to operate for five seasons. It can manufacturer only during the first four seasons and in the fifth period, it is only allowed to sell any leftover products.

It can manufacture two types of products. One unit of product 1 requires five man-hours in preparatory shop and three man-hours in finishing shop. Each unit of product 2 requires six man-hours in preparatory shop and one man-hour in finishing shop. During each season, the company has at most 1200 man-hours in preparatory and 15000 man-hours in the finishing shop (only during the first four seasons).

The product manufacturers during some season can be sold anytime from the next season onward. However, selling requires some marketing effort and it is expected that 0.1 and 0.2 man-hours of marketing effort are required to sell 10 units of products 1 and 2, respectively.

Man-hours for marketing effort can be hired at the rates given in the table at the top. There is no limit on the number of man-hours that can be hired for marketing efforts at the overtime rate.

If a unit of product is available for sale during a season, but is not sold in that season, the manufacturer has to pay carryover charges of $2 per unit to put it up for sale again in the next season. The selling prices in the various seasons are given in the table below. How should the company operate in order to maximize its total profit?

Season   Normal Rate        Max Man-Hrs         Overtime Rate    Expected Selling           Price per Unit of

                 Per Man-Hr        at Normal Rate        per Man-Hour       Product 1                            Product 2

2                $2                     400                               $20               $20                                $45

3                $4                     300                               $20               $25                                $40

4                $1                     600                              $20                $30                                 $40

5                $10                 1000                                $20               $15                                 $30

Reference no: EM131954962

Questions Cloud

How gender is portrayed in henrik ibsens a dolls house : Write an essay comparing how gender is portrayed in Henrik Ibsen's A Doll's House, to the role of women in the 21st century.
Determining breakeven volume for a medical clinic : Determining breakeven volume for a medical clinic. Pam Smart is CEO of the two-year-old Speedy Medical Clinic (SMC). She needs your help because SMC.
Primary and support activities in the value chain of emirate : What are the primary and support activities in the value chain of Emirates? What challenges does Emirates have in its value chain?
Assess the implications for using internal sources offinance : Clariton Antiques Ltd was founded five years ago by four partners. It started as an unincolporated business and has grown slowly and steadily.
How should the company operate in order to maximize : It can manufacturer only during the first four seasons and in the fifth period, it is only allowed to sell any leftover products.
Find the current yield and the promised yield for each bond : Given the information provided, find the current yield and the promised yield for each bond in the portfolio. (Use annual compounding).
Find the nominal annual rate of interest : Find the nominal annual rate of interest
What would be the weight used for equity : Carrie D's has 6.5 million shares of common stock outstanding, 2.5 million shares of preferred stock outstanding, and 15.00 thousand bonds.
Compute the effective annual rate of interest : Compute the effective annual rate of interest

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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