Types of lubercating fluids used in industrial manufacturing

Assignment Help Operation Management

Reference no: EM131133704

Eastern Chemicals produces 2 types of lubercating fluids used in industrial manufacturing. both products cost Eastern Chemicls $1 per gallon to produce. Based on an analysis of current inventory levels and outstanding orders for the next month, Eastern Chemicals management specified that at6 least 30 gallons of product one ad at least 20 gallons of product 2 muct be produced during the next 2 weeks. Management also stated that an existing inventory of highly perishable raw m,aterial in the production of both fluids must be used within the next 2 weeks. The current inventory of the perishable raw materials is 80 pounds. Although more of this raw material can be ordered if necessary, any of the current inventory that is not used within the next 2 weeks will spoil hence the management requirement that at least 80 pounds be used in the next 2 weeks. Furthermore it is known that product 1 requires 1 pound of this perishable raw material per gallon and product 2 requires 2 pounds of the raw material per gallon. Because Eastern Chemicals' objective isa to keep it's production costs at the minimum possible level, the firms management is looking for a minimum cost production plan that uses all 80 pounds of perishable rawe material and provides at least 30 gallons of product 1 and at least 20 gallons of product 2.

What is the minimum cost solution?

Reference no: EM131133704

Questions Cloud

Discussion of business ethics : Based upon your readings and our discussion of business ethics, what in your opinion is the most important thing a company can do to ensure employees act in an ethical manner? Why?

Great points and examples where ability-insight-willingnes : Great points and examples where ability, insight, willingness and commitment can all be enablers when making decisions! Class, what about willingness? Have you seen where an individual or individuals were not willing to make a decision in a specific ..

Deciding whether to outsource some of the firm IT function : If your Laboratory was deciding whether to outsource some of the firm's IT functions, what would be some important items to consider? Discuss these items in the context of a specific IT function that your company could outsource.

What is the total current value of investment : The Stillman School of Business is thinking about starting a Continuing Education Program in which students can earn a Certificate in Financial Planning. They expect that the upfront costs of the expansion will be $100,000. The cost of capital for th..

Types of lubercating fluids used in industrial manufacturing : Eastern Chemicals produces 2 types of lubercating fluids used in industrial manufacturing. both products cost Eastern Chemicls $1 per gallon to produce. Based on an analysis of current inventory levels and outstanding orders for the next month, Easte..

What is the average number of prescriptions in the queue : The pharmacist at Arnold Palmer Hospital, Wende Huehn- Brown, receives 15 requests for prescriptions each hour, Poisson distributed. It takes her a mean time of 3 minutes to fill each, following a negative exponential distribution. Use the waiting- l..

Poor communication between you and manager : Relate a time when you had poor communication between you and a manager, you and a co-worker, or you and someone who reported to you? What was the scenario? How did it get started? Why did it occur? What could you have done to prevent it from occurri..

Procedures and developing objectives classification strategy : First, identify and describe the four team classifications using a “level of responsibility in setting procedures and developing objectives” classification strategy. Which of these team types (feel free to specify one type or more than one type) do y..

What is an individuals personality : What is an individual’s personality? Identify and describe each component of the “Big Five” personality taxonomy. Which component do you believe is the most desirable for an employee to possess (in general) and why? Which component do you believe is ..

User Account

All Pages