ABC Products Inc Only One Operator Per Machine Is Required on Machines #1

question 26

Essay

ABC Products Inc. produces three products (A, B, and C) on three machines. Machines 1 and 2 are available for 40 hours a week, and Machine 3 is available for 60 hours a week. Profit contribution and standard production time in hours are given in the following table:
$\begin{array}{llll}&&\text { Product }\\&A&B&C\\\text { Profit Contribution/Unit } & \$ 40 & \$ 60 & \$ 30 \\\text { Machine \#1 (time/unit) } & 0.6 & 2.2 & 1.8 \\\text { Machine \#2 (time/unit) } & 1.2 & 0.8 & 0.7 \\\text { Machine \#3 (time/unit) } & 2.4 & 2.8 & 2.0\end{array}$ Only one operator per machine is required on Machines #1 and #2. Two operators are required for Machine #3. Therefore, two hours of labor must be scheduled for each hour of Machine #3's time. To restate this requirement, two operators must be scheduled for each hour of Machine #3's operation, as well as one operator for each hour of Machine #1's operation and one operator for each hour of Machine #2's operation. A total of 110 labor hours is available for assignment to the three machines during the coming week. Other production requirements are that Product A cannot account for more than 40% of the units produced and that Product C must account for at least 25% of the units produced.
a. Develop the constraint for the capacity limit of Machine #1.
b. Develop the constraint for the capacity limit of Machine #3.
c. Develop the constraint for the labor capacity limit.
d. Develop the constraint for limiting Product A to no more than 40% of the units produced.
e. Develop the constraint that ensures Product C accounts for at least 25% of the units produced.

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Definitions:

Myopia

A condition where individuals or organizations focus on short-term gains at the expense of long-term benefits, often leading to suboptimal decisions.

Time Inconsistency

The phenomenon where a person's preferences change over time, such that what is preferred in the future is inconsistent with what is preferred now, often leading to planning and decision-making challenges.

Behavioral Economists

Researchers who study the psychological, cognitive, emotional, cultural, and social factors that affect the economic decisions of individuals and institutions.

Endowment Effect

A cognitive bias where individuals value an owned object higher than its market value simply because they own it.