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Boilermakers, Inc. produces 3 products: A, B, and C. The unit prices of product A, B, and C are $5, $50 and $200, respectively. Assume that these products can be sold in unlimited quantities. We further have the following production requirements: 1) Producing one unit of product A requires 3 hours of labor. 2) Producing one unit of product B requires 9 hours of labor plus 4 units of A. 3) Producing one unit of product C requires 18 hours of labor, 2 units of A, and 3 units of B. In addition, any units of product A used to produce product B or product C cannot be sold, and any units of product B used to produce product C cannot be sold. A total of 120 hours of labor are available. Formulate a linear program to maximize revenue. You may assume that fractional solutions are acceptable. A = number of units of products A produced. B = number of units of products B produced. C = number of units of products C produced. X = number of units of products A sold. Y = number of units of products B sold. Z = number of units of products C sold
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Case study of Rittenhouse Medical
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Compute the economic production quantity. Compute the annual minimum total cost. How many working days does each production run take? What is the level of maximum inventory? What is the cycle time.
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