A company produces three different products that all require processing on the same machines. The company has only 27,000 machine hours available in each year. Production information for each product is:
Required:
(1) Determine the preferred sales mix if there are no market constraints on any of the products.
(2) Determine the preferred sales mix if the demand is limited to 5,000 units for each product.
(3) Determine the preferred sales mix if the demand is limited to 3,000 units for each product.
Definitions:
JIT Systems
Just-In-Time Systems refer to a strategy to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.
Inventory
The quantity of goods or materials that a business holds for the purpose of resale or production.
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