What are the optimal production quantities

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Reference no: EM13255249

The Heat Corporation produces three types of rugs, which it sells to large carpet stores. The production of each rug requires two machine operations, weaving and binding, followed by assembly, which includes inspection and packaging. All three rug types require 0.4 hour of assembly time, but the machining operations have different processing times as shown here in the table below, in hours per unit:

Rectangle Runner Oval
Weaver: 0.2 0.4 0.6
Binder: 0.6 0.2 0.5

Each machine is available 150 hours per month, and the current size of the assembly department provides capacity of 600 hours. Each rug produced yields a unit of profit contribution as seen in the table below:

Rectangle Runner Oval
Profit: $80 $60 $100

What are the optimal (maximum profit) production quantities for the company?

Reference no: EM13255249

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