A company that manufactures electrical appliances is looking at one of its lines (washing machines), where it offers three different levels of specification: Basic which sells for £250, Medium which sells for £450 and Luxury which sells for £700. The production of each machine goes through four different stages and you have been provided with the following data table:

Process\Machine	Basic	Medium	Luxury	Cost per hour	Max. Available
Forming	1.5 hours	3 hours	7 hours	£5.50	6,500 hours
Machining	5 hours	8 hours	14 hours	£7.50	18,000 hours
Assembly	2.5 hours	4.5 hours	8 hours	£9.50	8,500 hours
Testing	2 hours	2 hours	2 ½ hours	£12.00	5,200 hours

The marketing department has also done some market research and believes demand for each of the models is limited to 1,450 units of the basic model, 900 of the medium and 750 of the luxury. You are required to:

1. Formulate this problem as a linear program and use Excel's Solver to arrive at a solution, identifying what is the maximum profit the company can achieve in the washing machine product line.

2. How would your answer change if the following happened:

a. Maximum demand for Medium model was 1,000; OR

b. Maximum available Assembly hours were 9,500.

3. Write a report with a recommended production and marketing plan for the company.

Posted Date: 3/18/2013 4:18:37 AM | Location : United States

Ask an Expert

Related Discussions:- Find out maximum demand for medium model , Assignment Help, Ask Question on Find out maximum demand for medium model , Get Answer, Expert's Help, Find out maximum demand for medium model Discussions

Write discussion on Find out maximum demand for medium model
Your posts are moderated

Write your message here..

Related Questions

D, c c

IS-LM, After read all the available information carefully, prepare a two pa... After read all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.50Y

Calculate effective annual cost, What is the effective annual cost of skipp... What is the effective annual cost of skipping the discount and paying at the end of the net period for the following credit terms: 6/10, net 70? please show work"

Cost of capital, Cost of capital: The cost of capital is a term relate... Cost of capital: The cost of capital is a term related to the field of financial investment to refer to the cost of a company's funds (both equity and debt), from an investor'

Determine the required rate of return on the security, Elephant Company com... Elephant Company common stock has a beta of 1.2. The risk-free rate is 6% and the expected market rate of return is 12%. Determine the required rate of return on the security.

Accounting rate of return method or arr, Accounting Rate of Return Method o... Accounting Rate of Return Method or ARR This method utilizes accounting profits from financial status to assess the viability of investment proposal via diving the average inc

Nash equilibrium, Suppose that two players are playing the following game. ... Suppose that two players are playing the following game.  Player A can choose either Top or Bottom, and Player B can choose either Left or Right.  The payoffs are given in the foll

Making income statements, i have the information given but i am having trou... i have the information given but i am having trouble getting the income statement done correctly

Corporate finance, I need report on Corporate Finance. Do you provide help ... I need report on Corporate Finance. Do you provide help in topic Corporate Finance? I need expert's assistance to solve my college assignment. Please suggest if it works for me.

Debt finance in us of small companies, Debt Finance in US of Small Companie... Debt Finance in US of Small Companies Why It CAN Be Difficult For Small Companies to Raise Debt Finance in US Lack of safety avoidances of finances available