A manufacturer of television sets made four models – Sport, Standard, Traveler and Super. Each set requires assembly and test operations. The assembly time for the models is 8, 10,12, 15 hours respectively. The test time is 2,2,4 and 5 hours. The company has 2000 hours for assembling and 500 hours for testing. The marginal profit for the four products is 40, 60, 80 and 100 dollars. The supplier of screens indicated that he is not able to supply more than 180 pcs. and not more 100 of them can be for the models Traveler and Super. a) What is the optimal production schedule? b) Is there any alternative optimal schedule? c) Suppose that 80 additional hours of test time could be obtained from the outside at price $4 per hour. Should this be done?
A manufacturer of television sets made four models – Sport, Standard, Traveler and Super.
Each set requires assembly and test operations. The assembly time for the models is 8, 10,12,
15 hours respectively.
The test time is 2,2,4 and 5 hours. The company has 2000 hours for assembling and 500 hours
for testing. The marginal profit for the four products is 40, 60, 80 and 100 dollars. The supplier
of screens indicated that he is not able to supply more than 180 pcs. and not more 100 of them
can be for the models Traveler and Super.
a) What is the optimal production
b) Is there any alternative optimal schedule?
c) Suppose that 80 additional hours of test time could be obtained from the outside at price
$4 per hour. Should this be done?
d) What is the marginal value?
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