Better Products, Inc., manufactures three products on twomachines. In a typical week, 40 hours are available on eachmachine. The profit contribution and production time in hours perunit are as follows:
Better Products Inc Manufactures Three Products On Two Machines In A Typical Week 40 Hours Are Available On Each Ma 1 (12.35 KiB) Viewed 18 times
Two operators are required for machine 1; thus, 2 hours of labormust be scheduled for each hour of machine 1 time. Only oneoperator is required for machine 2. A maximum of 100 labor-hours isavailable for assignment to the machines during the coming week.Other production requirements are that product 1 cannot account formore than 50% of the units produced and that product 3 must accountfor at least 20% of the units produced.
a. How many units of each product should be produced to maximizethe total profit contribution? What is the projected weekly profitassociated with your solution?
b. How many hours of production time will be scheduled on eachmachine?
c. What is the value of an additional hour of labor?
d. Assume that labor capacity can be increased to 120 hours.Would you be interested in using the additional 20 hours availablefor this resource? Develop the optimal product mix assuming theextra hours are made available.
Category Profit/unit Machine 1 time/unit Machine 2 time/unit Product 1 $30 0.5 1.0 Product 2 $50 2.0 1.0 Product 3 $20 0.75 0.5
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