Kalyan Singhal Corp. makes three products, and it has three machines available as resources as given in the fol LP problem: Maximize contribution = 5X₁ +4x₂+3X3 1X₁ +7X₂ +4X3 ≤ 90 2X₁ + 1X₂ +7X3 ≤ 96 8X₁ +4X2 + 1X3 ≤ 90 X₁, X2, X3 20 (C₁: hours on machine 1) (C₂: hours on machine 2) (C3: hours on machine 3) a) Using a computer software for solving LP, the optimal solution achieved is: X₁ = (round your response to two decimal places).
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- Collins Little Company has a staff of 4 employees, each working 8 hours per day at a rate of$20/hour. Their overhead expenses are $200/day. Collins processes and closes on 12 titleseach day. They are considering purchasing a computerized title search system that will allowthe processing of 20 titles per day. With the new system, they could cut their staff to 2employees working the same hours at the same pay, but their overhead expenses woulddouble to $400 per day.a. Compute the labor productivity with the old system (in titles / worker hour).b. Compute the labor productivity with the new system (in titles / worker hour).c. Compute the multifactor productivity with the old system (in titles / dollar).d. Compute the multifactor productivity with the new system (in titles / dollar)Cara Ryder manages a ski school in a large resort and is try-ing to develop a schedule for instructors. The instructorsreceive little salary and work just enough to earn room andboard. They receive free skiing and spend most of their freetime tackling the resort’s notorious double black-diamondslopes. Hence, the instructors work only 4 days a week. Oneof the lesson packages offered at the resort is a 4-day begin-ner package. Ryder likes to keep the same instructor with agroup over the 4-day period, so she schedules the instructorsfor 4 consecutive days and then 3 days off. Ryder uses years ofexperience with demand forecasts provided by managementto formulate her instructor requirements for the upcomingmonth.a. Determine how many instructors Ryder needs to employ.Give preference to Saturday and Sunday off. (Hint: Lookfor the group of 3 days with the lowest requirements.)b. Specify the work schedule for each employee. How muchslack does your schedule generate for each day?QuestionByron Sports is a manufacturer of sportswear. It produces all of its products in one department using a process costing system.The information for the current month is as follows:Beginning work in process (30% complete as to conversion cost) 12,000 unitsUnits started 90,000 unitsUnits completed and transferred out ?Ending work in process (70% complete as to conversion) 8,000 unitsCosts:Beginning work-in-process direct materials $28,800Beginning work-in-process conversion $5,040Direct materials added during month $216,000Conversion costs incurred during the month $139,200Direct materials are added at the beginning of the process. Conversion costs are incurred uniformlythroughout the production process. Costing is handled on a FIFO basis Required:a. Prepare a production cost worksheet using 5 steps approach.b. Under what conditions would a process costing system be more appropriate than a job order costing system? Explain.
- IIn a job shop, effective capacity is only 69 percent of design capacity, and actual output is 76 percent of effective output. What design capacity would be needed to achieve an actual output of 13 jobs per week? What is its effective capacity? a. The Design Capacity needed to achieve the required actual job outputs =Blank 1 (round to whole number) b. The Effective Capacity needed to achieve the required actual job outputs = Blank 2 (round to whole number) Blank 1 Blank 2 Add your answer Add your answerIn the bakery, we have established that design capacity is 30 pies per day and effective capacity is 20 pies per day. Currently, the bakery is producing 27 pies per day. What is the bakery’s capacity utilization relative to effective capacity?Illinois Furniture, Inc., produces all types of office furniture. The "Executive Secretary" is a chair that has been designed using ergonomics to provide comfort during long work hours. The chair sells for $130. There are 480 minutes available during the day, and the average daily demand has been 48 chairs. There are eight tasks: Task A BCDEFGH с Performance Time (mins) 5 8 ∞ CO CO LO ∞0 co 6 6 5 8 7 6 This exercise only contains part a. a) The correct precedence diagram is present in Task Must Follow Task Listed Below A, B C D E E F, G Figure 1 @ Figure 2 Figure 3 Go-0-0.80
- Shelves Unlimited is interested in estimating the additional machine center capacities for a new Book Shelf. The shelf is made from two end panels, three shelves plus a number of various fasteners and hangers. Fabrication is as follows: End Panel: Operation Machine Run Time (per unit) Setup Time Per Operation Saw 6 minutes .8 hours .1 hours 2 minutes 3 minutes Planer Router 3 .8 hours Shelf. Run Time (per unit) Operation Machine Setup Time Per Operation Saw 2 minutes .3 hours 3 minutes Molder 1.4 hours 5 minutes 1 minute 3 Router .7 hours 4 Sander .1 hours A. If Shelves Unlimited makes a batch of 250 book shelves, how much time will be required on the Router? B. If the work center which performs the molding of the selves were to take 34 hours (including setup) to produce a batch of 250 shelves, what would be the efficiency of the work center?The M-N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each product uses raw materials with costs as shown. The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Resources: A, B, C (one each) Availability: 3,800 min./week Operating expense: $12,000/week Product M $190/unit 120 units/week Machine A Machine C Machine B 15 min./unit A 20 min./unit RM-1 $60/unit Product N $200/unit 80 units/week 15 min./unit B 10 min./unit RM-2 $40/unit B 10 min./unit RM-3 $40/unit Process times for each task are shown in the diagram. Each machine is available 3,800 minutes per week. There are no "Murphys" (major opportunities for the system to foul up). Setup and transfer times are zero. Demand is constant. Operating expenses (including labor) total a constant $12,000 per week. Raw materials are not included in weekly operating expenses. a.…A company has a factory that is designed so that it is most efi cient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?
- Supertronics, Inc., would like to know how the firm’s profit-ability is altered by product mix. Currently, product mix isdetermined by giving priority to the product with the highestper-unit contribution margin (defined as the difference be-tween price and material cost). Details on the Supertronicsproduct line, including processing time at each workstation,follow:a. Assume that Supertronics has 5,500 minutes of capacityavailable at each workstation each week. Develop a linearprogram to define the production mix that maximizescontribution margin.b. Solve your formulation using a computer package such asPOM for Windows. c. Given your solution for part (b), which machine is thebottleneck?d. How would your formulation and solution in part(b) change if 50 units of each product were alreadycommitted to customers and thereby had to beproduced?Collins Little Company has a staff of 4 employees, each working 8 hours per day at a rate of $20/hour. Their overhead expenses are $200/day. Collins processes and closes on 12 titles each day. They are considering purchasing a computerized title search system that will allow the processing of 20 titles per day. With the new system, they could cut their staff to 2 employees working the same hours at the same pay, but their overhead expenses would double to $400 per day. Compute the labor productivity with the old system (in titles / hour). Compute the labor productivity with the new system (in titles / hour). Compute the multifactor productivity with the old system (in titles / dollar). Compute the multifactor productivity with the new system (in titles / dollar).Manufacturing Aggregate Planning Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy. b.) Compute the costs of the Level Strategy c.) Compare the costs of the two strategies. Which one is superior?