Schmidt Industries has weekly fixed costs of $5000 and has a demand forecast of 80 Harlans, 60 Gaylen's, 40 Leahs, and 20 Matthews for the coming week. How many of each of the four models should Susan, the operations manager, scheduled for production this week? Show detail of breakdown
Schmidt Industries makes four different snake traps; the Harlan, the Gaylen, the Leah, and the Matthew. The Harlan sells for $200 and has $40 in parts and $40 in labor; the Gaylen sells for $150 and requires $30 in parts and $30 in labor; the Leah sells for $100 and has $20 in parts and $20 in labor, and the Matthew sells for $75 but requires only $10 of parts and $10 of labor. Schmidt Industries has four machines (we'll call them A, B, C, and D for convenience) that are used in the production of each of these products. Each of these machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table.
|
|
Processing Time on Each Machine in Minutes |
|||
|
Model |
Machine A |
Machine B |
Machine C |
Machine D |
|
Harlan |
10 |
15 |
15 |
5 |
|
Gaylen |
10 |
10 |
10 |
10 |
|
Leah |
5 |
10 |
15 |
10 |
|
Matthew |
5 |
5 |
5 |
10 |
Schmidt Industries has weekly fixed costs of $5000 and has a demand
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