Project MAnagement, Operation Management

Assignment Help:
A firm uses three machines in the manufacturing of three products:

Each unit of product 1 requires three hours on machine 1, two hours on machine 2 and one hour on machine 3.
Each unit of product 2 requires four hours on machine 1, one hour on machine 2 and three hours on machine 3.
Each unit of product 3 requires two hours on machine 1, two hours on machine 2 and two hours on machine 3.

The contribution margin of the three products is £30, £40 and £35 per unit, respectively.

The following are available for scheduling:

90 hours of machine 1 time
54 hours of machine 2 time
93 hours of machine 3 time

The linear programming formulation of this problem is as follows:

Maximise Z = 30X1 + 40X2 + 35X3

3X1 + 4X2 + 2X3 <= 90

2X1 + 1X2 + 2X3 <=54

X1 + 3X2 + 2X3 <=93

With X1, X2, X3 >= 0

To answer this question:

Answer each question and explain your reasoning or show your calculations.

What is the optimal production schedule for this firm? What is the profit contribution of each of these products?
What is the marginal value of an additional hour of time on machine 1? Over what range of time is this marginal value valid?
What is the opportunity cost associated with product 1? What interpretation should be given to this opportunity cost?
How many hours are used for machine 3 with the optimal solution?
How much can the contribution margin for product 2 change before the current optimal solution is no longer optimal?

Related Discussions:- Project MAnagement

Explain produced and sold to break-even, Assume a fixed cost for a process ...

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. Which of the following

Plant layout, Outline the considerations for choice of location and the cri...

Outline the considerations for choice of location and the criteria for good layout?

Explain job design be used to create a motivated workforce, How can job des...

How can job design be used to create a more motivated workforce? Be specific.

Explain tuxedo ordering system for a local school system, You are on a proj...

You are on a project team that has been assigned a tuxedo ordering system for a local school system your question here

Line balancing, Line Balancing Line balancing is arranging a production ...

Line Balancing Line balancing is arranging a production line so that there is an even flow of production from one work station to the next i, e, so that there are no delays at a

When manager focus the progress of an affirmative action, when manager moni...

when manager monitors the progress of an affirmative action program to advance minorities within the corporation; reviewing progress on changing in staff attitude; calls a special

Decision tree analysis applied to capacity expansion, Decision Tree Analysi...

Decision Tree Analysis Applied to Capacity Expansion Linear programming and computer simulation models focus on the short term question of how to use existing capacity. But the

Explain the probability that rich will go to each store, The hunt is on: Ri...

The hunt is on: Rich's 13 year old daughter Alexandra is going to give him an introductory trombone concert later in the day, and he wants to purchase earplugs before then. Three s

Explain specifically about team incentive rewards, Do results from the surv...

Do results from the survey illustrate typical complaints about teams and specifically about team incentive rewards?

Explain gauge reproducibility and repeatability, Describe gauge reproducibi...

Describe gauge reproducibility and repeatability. How does gauge R and R apply to a six sigma project?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd