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 what is the capacity of the factory, Hickory Manufacturing Company ...

Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. Year 1 2 3 4 5 Forecast demand 60 79 81 84 84 Currently

Explain important terms of the factories act 1948, Explain important Terms ...

Explain important Terms of the factories act 1948. Important Terms of act: (a) Factory:  A place wherein ten or more persons are working and wherein a manufacturin

Memo motion and micro motion recording, Memo Motion and Micro Motion Record...

Memo Motion and Micro Motion Recording Originally based on cine-photography, nowadays video-recording technology is used to record patterns of movement in process activities.

LP, A PAPER MILL PRODUCES TWO GRADES OF PAPER VIZ., X AND Y. BECAUSE OF RAW...

A PAPER MILL PRODUCES TWO GRADES OF PAPER VIZ., X AND Y. BECAUSE OF RAW MATERIAL RESTRICTIONS, IT CANNOT PRODUCE MORE THAN 400 TONS OF GRADE X PAPER AND 300 TONS OF GRADE Y PAPER I

Explain maturity of a bond, What is the yield to maturity of a bond that pa...

What is the yield to maturity of a bond that pays an 3% coupon rate, matures in 15 years, and is currently selling for $850? a.) 8.75% b.) 4.37% c.) 4.39% d.) 17.50%

Explain purposes of performance management, 1) Which purposes of performanc...

1) Which purposes of performance management did the appraisals described in this case fulfil? Which purposes did they not fulfil? 2) How can managers and HR departments minimize th

Explain ethical for employers to use information technologie, Is it ethical...

Is it ethical for employers to use information technologies to extend work into employees home lives?

Oprational strategies, 1.technology strategy 2.capacity strategy 3.facility...

1.technology strategy 2.capacity strategy 3.facility location strategy 4.process strategy 5.quality strategy

Define as a labour relations specialist in the hr department, The committee...

The committee is asking you, as a labour relations specialist in the HR department, whether this wording is likely to be acceptable

Explain case studies with ethnographic research, 1. What benefits can be ga...

1. What benefits can be gained from case studies? What dangers, if any, are there in using case studies? In what ways are they useful? Support your answers. 2. Provide some exam

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