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As a Supervisor of a Production Department, You Must Decide

question 78

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As a supervisor of a production department, you must decide the daily production totals of a certain product that has two models, the Deluxe and the Special.The profit on the Deluxe model is $12 per unit and the Special's profit is $10.Each model goes through two phases in the production process, and there are only 100 hours available daily at the construction stage and only 80 hours available at the finishing and inspection stage.Each Deluxe model requires 20 minutes of construction time and 10 minutes of finishing and inspection time.Each Special model requires 15 minutes of construction time and 15 minutes of finishing and inspection time.The company has also decided that the Special model must comprise at least 40 percent of the production total.The optimal product mix should include

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Definitions:

Production Possibility Frontier

A graphical representation that shows the maximum combination of two goods or services that can be produced within a given time period, given available resources and technology.

Economic Growth

A growth in an economy's ability to generate goods and services when comparing two different time periods.

Unemployment

A condition where people who are willing to work at prevailing wage rates cannot find employment.

Hybrid Cars

Vehicles that utilize a combination of at least one electric motor along with a gasoline engine to propel the vehicle, offering improved fuel efficiency and reduced emissions compared to conventional vehicles.

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