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A Manager Must Decide on the Mix of Products to Produce

question 14

Essay

A manager must decide on the mix of products to produce for the coming week.Product A requires three minutes per unit for molding,two minutes per unit for painting,and one minute for packing.Product B requires two minutes per unit for molding,four minutes for painting,and three minutes per unit for packing.There will be 600 minutes available for molding,600 minutes for painting,and 420 minutes for packing.Both products have contributions of $1.50 per unit.
a.Algebraically state the objective and constraints of this problem.
b.Plot the constraints on the grid below and identify the feasible region. A manager must decide on the mix of products to produce for the coming week.Product A requires three minutes per unit for molding,two minutes per unit for painting,and one minute for packing.Product B requires two minutes per unit for molding,four minutes for painting,and three minutes per unit for packing.There will be 600 minutes available for molding,600 minutes for painting,and 420 minutes for packing.Both products have contributions of $1.50 per unit. a.Algebraically state the objective and constraints of this problem. b.Plot the constraints on the grid below and identify the feasible region.


Definitions:

Production Capacity

The maximum output that an organization can produce with the available resources in a given period.

Operating Loss

The amount by which the operating expenses of a business exceed its gross profits.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or insurance.

Materials Markup

The extra percentage added to the cost price of goods to cover overhead and profit when selling goods.

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