A manufacturing firm has discontinued production of a certain unprofitable product line. This created considerable excess production capacity. Management is considering to devote this excess capacity to one or more of three product 1,2 and 3. The available capacity on the machines which might limit output are given below: Machine type Available time (in machine hours per week) Milling 250 machine Lathe 150 Grinder 50 The number of machine hours required for each units of the respective product is given below; Machine type Productivity (in machine hours/unit) Product 1 Product 2 Product 3 Milling 8 2 3 Lathe 4 3 0 Grinder 2 0 1 The unit profit would be 20 birr, 6 birr and 8 birr for products 1,2 and 3. Find how much of each product the firm should produce in order to maximise profit ? Solve the problem by simplex method
A manufacturing firm has discontinued production of a certain unprofitable product line. This created considerable excess production capacity. Management is considering to devote this excess capacity to one or more of three product 1,2 and 3. The available capacity on the machines which might limit output are given below: Machine type Available time (in machine hours per week) Milling 250 machine Lathe 150 Grinder 50 The number of machine hours required for each units of the respective product is given below; Machine type Productivity (in machine hours/unit) Product 1 Product 2 Product 3 Milling 8 2 3 Lathe 4 3 0 Grinder 2 0 1 The unit profit would be 20 birr, 6 birr and 8 birr for products 1,2 and 3. Find how much of each product the firm should produce in order to maximise profit ? Solve the problem by simplex method
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
A manufacturing firm has discontinued production of a certain unprofitable product
line. This created considerable excess production capacity. Management is considering to
devote this excess capacity to one or more of three product 1,2 and 3. The available capacity
on the machines which might limit output are given below:
Machine type Available time
(in machine hours per week)
Milling 250
machine
Lathe 150
Grinder 50
The number of machine hours required for each units of the respective product is given
below;
Machine type Productivity (in machine hours/unit)
Product 1 Product 2 Product 3
Milling 8 2 3
Lathe 4 3 0
Grinder 2 0 1
The unit profit would be 20 birr, 6 birr and 8 birr for products 1,2 and 3. Find how much of
each product the firm should produce in order to maximise profit ? Solve the problem by
simplex method
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.