A company manufactures two products A and B. Each unit of A requires 4 labour hours of processing and each unit of B requires 2 labour hours of processing. Demand for these two products per month is 7 and 10 units respectively Profit Per unit is Rs. 400 and Rs. 200 respectively. Determine the best combination of A and B to be produced. Total labour hours available per month is 32. There is additional cost of Rs. 200 per overtime labour hours and Rs. 175 cost of underutilised labour hours. A cost of Rs. 250 is assessed for any shortfall in meeting demand.

A company manufactures two products A and B. Each unit of A requires 4 labour hours of processing and each unit of B requires 2 labour hours of processing. Demand for these two products per month is 7 and 10 units respectively Profit Per unit is Rs. 400 and Rs. 200 respectively. Determine the best combination of A and B to be produced. Total labour hours available per month is 32. There is additional cost of Rs. 200 per overtime labour hours and Rs. 175 cost of underutilised labour hours. A cost of Rs. 250 is assessed for any shortfall in meeting demand.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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