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The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Department A B с Labor-Hours Required 0.30 0.20 Profit contribution/unit $30.00 (hours/unit) Product 1 Product 2 Hours Available 1.00 Tequined 0.35 0.20 0.50 $15.00 95 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 38 50 Production 69.77 (b) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? 72.09 Dept A What is the upper limit of what you would be willing to pay per hour of overtime in the department you recommended? nimal plass

The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Department A B с Labor-Hours Required 0.30 0.20 Profit contribution/unit $30.00 (hours/unit) Product 1 Product 2 Hours Available 1.00 Tequined 0.35 0.20 0.50 $15.00 95 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 38 50 Production 69.77 (b) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? 72.09 Dept A What is the upper limit of what you would be willing to pay per hour of overtime in the department you recommended? nimal plass

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 46P
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(c) Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is $18 in department A, $22.50 in department B, and $12 in department C. Formulate a linear programming model that can be used to determine the optimal production quantities if overtime is made available. What are the optimal production quantities, and what is the revised total contribution to profit? If required, round your answer to two decimal places. Product 2 Production If required, round your answer to nearest whole number. Total Profit $ 3253.6 Dept. A How much overtime do you recommend using in each department? If required, round your answer to two decimal places. If you answer is zero, enter "0". OT hours: B с Product 1 × 79.07 79 Hide Feedback Partially Correct Used 8 68.37 0 What is the increase in the total contribution to profit if overtime is used? If required, round your answer to nearest whole number. $ 0
Transcribed Image Text:(c) Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is $18 in department A, $22.50 in department B, and $12 in department C. Formulate a linear programming model that can be used to determine the optimal production quantities if overtime is made available. What are the optimal production quantities, and what is the revised total contribution to profit? If required, round your answer to two decimal places. Product 2 Production If required, round your answer to nearest whole number. Total Profit $ 3253.6 Dept. A How much overtime do you recommend using in each department? If required, round your answer to two decimal places. If you answer is zero, enter "0". OT hours: B с Product 1 × 79.07 79 Hide Feedback Partially Correct Used 8 68.37 0 What is the increase in the total contribution to profit if overtime is used? If required, round your answer to nearest whole number. $ 0
The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Labor-Hours Required Department A B с (hours/unit) Product 1 Product 2 Hours Available Production 1.00 0.30 Profit contribution/unit $30.00 0.20 38.27 0.35 0.20 0.50 $15.00 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 69.77 M 95 72.09 38 50 (b) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? Dept A What is the upper limit of what you would be willing to pay per hour of overtime in the department you recommended? If required, round your answer to two decimal places.
Transcribed Image Text:The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Labor-Hours Required Department A B с (hours/unit) Product 1 Product 2 Hours Available Production 1.00 0.30 Profit contribution/unit $30.00 0.20 38.27 0.35 0.20 0.50 $15.00 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 69.77 M 95 72.09 38 50 (b) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? Dept A What is the upper limit of what you would be willing to pay per hour of overtime in the department you recommended? If required, round your answer to two decimal places.
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