Reference no: EM131247435

The Kommet Machine Tool Company produces two products, muffler bearings and torque amplifiers. One muffler bearing requires .20 hours of assembly labor, .45 hours in the stamping department and 9 square feet of sheet steel. Each torque amplifier requires .50 hours in assembly and .30 hours in stamping and uses 8 square feet of sheet steel. Current weekly capacities in the two departments are 400 hours of assembly labor and 500 hours of stamping capacity. Sheet steel costs 35 cents per square foot. Muffler bearings can be sold for $20.00 each. Torque amplifiers can be sold for $17.00 each. Unused capacity in either department cannot be laid off or otherwise fruitfully used.

1. Formulate and solve a LP useful in maximizing the weekly profit contribution. Determine the optimal schedule, i.e. production levels of the two products, assembly labor used, time required in the stamping department and sheet steel required.
2. It has just been discovered that up to 150 hours of overtime assembly labor can be scheduled at a cost of $7 per hour. Modify the formulation and solve. What if an overtime assembly hour costs $10.00?