Robin Tires, Inc

question 47

Essay

Robin Tires, Inc. makes two types of tires, for SUV's and Hatchbacks. The firm has 500 hours of production time, 250 hours of packaging, and 150 hours available for shipping. The production time required per tire type is given in the following table:

Assuming that the company is interested in maximizing the total profit contribution, find the optimal solution using Excel Solver and answer the following:a. How many hours of production time will be scheduled in each department? b. What is the slack time in each department? c. If one more hour is available for packaging, what is the change in profit? d. What is the change in profit if one more hour is available for shipping?

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Definitions:

Investments

Assets purchased with the goal of generating income or appreciating in value over time.

Consultant's Fee

The amount charged by a consultant for their professional advice or services.

Computer Equipment

Tangible assets related to computers and technology used in the operational activities of a business, such as servers, desktops, and peripherals.

Capital Expenditures

Investments in physical assets like property, plant, and equipment, which are expected to improve a company’s future productive capacity.