A Machine Makes a Floor Lamp Model and a Desk

question 28

Essay

A machine makes a floor lamp model and a desk lamp model.The setup time for either lamp is 10 minutes.A floor lamp can be produced in 3 minutes and a desk lamp can be produced in 2 minutes.125 floor lamps are needed per day and 100 desk lamps are needed per day.What is the most economical production batch size for each lamp?

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Definitions:

Production Possibilities

Various combinations of goods and services that can be produced within an economy given available resources and technology.

Economies Of Scale

The cost advantage achieved by producing goods in large quantities, hence reducing the cost per unit.

Quality Of Products

Refers to the degree to which a product or service meets or exceeds customer expectations in terms of durability, reliability, and performance.

Production Costs

The expenses directly associated with the manufacturing of goods or services, including materials, labor, and overhead.