Determine the associated optimum revenue

Assignment Help Operation Management

Reference no: EM131724901

A company manufactures two products A and B. The unit revenues are $2 and $3 respectively. Two raw materials (M1 and M2) used in manufacture of the two products have daily availabilities of 18 and 28 units respectively. One unit of A uses 2 units of M1 and 2 units of M2, and 1 unit of B uses 3 units of M1 and 6 units of M2.

a) Determine the shadow prices of M1 and Mi

b) Suppose that 4 additional units of M1 can be acquired at the cost of 30 cents per unit. Would you recommend the additional purchase?

c) If M2 availability is increased by 5 units, determine the associated optimum revenue

d) What is the most value the company should pay per unit of M2?

Reference no: EM131724901

Questions Cloud

Several key aspects shared by social entrepreneurs : There are several key aspects shared by social entrepreneurs. Which of the following aspects is not one of them?

Accounts of successful corporate entrepreneurship : Search the Internet for four accounts of successful corporate entrepreneurship. What key factors for success are common across all these accounts?

Assessment of the globalization strategies : What is your assessment of the globalization strategies of the Tata Group operating companies, particularly Indian Hotels, Tata Tea, and Tata Steel?

What is the average waiting time during the day : The Shady Farm Milk Company can process milk at a fixed rate of 6900 gallons/hour. What is the average waiting time during the day (8AM-6PM)?

Determine the associated optimum revenue : A company manufactures two products A and B. If M2 availability is increased by 5 units, determine the associated optimum revenue.

About thomas bus manufacturing company : Based on what you see and have been told, which is mostly true about Thomas Bus Manufacturing Company?

Write the equations of the following : Triangle ABC looks like a right triangle. Show mathematically whether it actually is or is not a right triangle.

Balance of the card in two years : Assuming they would no longer add more debt to the card, what would their payment need to be in order to pay off the balance of the card in two years?

Use of unskilled labour and keep : Use a linear approximation (degree one approximation) to decide by about how much the company can reduce its use of unskilled labour and keep its output.

User Account

All Pages