Reference no: EM132964015
Question - Consider the following weekly resource allocation problem faced by the production manager of XYZ Company. XYZ sells three types of computers; the PC (type X), the notebook computer (type Y), and the workstation (type Z). The net profit from each is Type X: $350; Type Y: $470; and Type Z: $610 where net profit equals the sales price of each computer minus the direct costs of purchasing components, producing computer cases, and assembling and testing the computer. Assume that all production during any given week can and will be sold immediately. For a particular week, 120 hours are available on the Type-A test equipment, where X and Y's are tested, and 48 hours are available on the Type-B test equipment, where Z's are tested. The testing of each computer takes one hour, regardless of type. Production is constrained by the availability of 2000 labor hours for product assembly. Each Type X takes 10 labor hours, type Y takes 15 labor hours and type Z takes 20 labor hours. Other activities have virtually unlimited resources. (i) Construct, by hand, an LP model of this problem.(ii) Use the SOLVER in Excel to solve this problem. Interpret your output.
Solve this problem using Solver in Excel and provide answers to the following questions:
a. How many PCs, Notebook computers, and workstations should be produced?
b. What is the total profit?
c. Is this an optimal solution?
d. Please submit your supporting Excel spreadsheet.
e. If you were given additional funding, where would you invest that money to increase your profit and why? (Hint: testing equipment? If so, which ones A, B, or both? production labor? Both testing equipment and production labor? make sure to articulate the reason(s) for your investment decision.
|
What is the cost of units transferred to finished goods
: The goods in process inventory account for AB corp. follows Good in process inventory. What is the cost of units transferred to finished goods
|
|
What was the cost of merchandise destroyed by fire
: XYZ Branch of the ABC Company is billed for merchandise by the home office at 20% above cost. What was the cost of merchandise destroyed by fire
|
|
Which strategic market research for technology requirements
: Which Strategic market research for technology requirements should be? Conducted concurrently with the tactical market research effort to achieve efficiencies
|
|
What is meant by break-even point
: What is meant by break-even point? What method can be used to determine the break-even point/ What is meant contribution margin
|
|
What is the total profit
: XYZ sells three types of computers; the PC (type X), the notebook computer (type Y), and the workstation (type Z). What is the total profit
|
|
Estimate the expected rate of return from investing in ssg
: Estimate the expected rate of return from investing in SSG, assuming the rate of dividend growth reverts to its long-run average of 4.0% per annum after 2024
|
|
What are its expected dividend yield and capital gains
: If the most recent dividend paid is $2.00 and required rate of return is 15%, What are its expected dividend yield and capital gains
|
|
Determine the xyz residual income
: Income for the period just ended: $1,500,000. If the company has a required rate of 11%, determine the XYZ's residual income
|
|
Determine the inventory expense
: Beginning Inventory is $10,000. $12,000 additional inventory is purchased. The ending Inventory is $12,000. Determine the Inventory Expense
|