A Company Can Decide How Many Additional Labor Hours to Acquire

question 22

Essay

A company can decide how many additional labor hours to acquire for a given week.Subcontractors will only work a maximum of 20 hours a week.The company must produce at least 200 units of product A,300 units of product B,and 400 units of product C.In 1 hour of work,worker 1 can produce 15 units of product A,10 units of product B,and 30 units of product C.Worker 2 can produce 5 units of product B,20 units of product B,and 35 units of product C.Worker 3 can produce 20 units of product A,15 units of product B,and 25 units of product C.Worker 1 demands a salary of $50/hr,worker 2 demands a salary of $40/hr,and worker 3 demands a salary of $45/hr.The company must choose how many hours they should hire from each worker to meet their production requirements and minimize labor cost.The sensitivity report is displayed below.

Answer the following questions:
a.How much of products A,B,and C should be produced?
b.Which constraints are binding? Which constraints are non-binding?
c.If constraint 2 is relaxed by one unit,how will the objective value be affected?

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Definitions:

Grave Circle A

An archaeological site located in Mycenae, Greece, notable for its royal burials and rich grave goods dating from the 16th to the 11th century BCE.

Shaft Graves

A type of deep burial structure found in Mycenaean civilization, notable for containing valuable artifacts and indicating social status.

Lion Gate

The main entrance of the Bronze Age citadel of Mycenae in Greece, famous for its lintel topped by a relief sculpture of two lionesses.

Repoussé Image

A metalworking technique where the surface is shaped by hammering from the reverse side to create a raised design.