a. Which machine is the constraint in this plant? Machine A Machine B v O Machine C
a. Which machine is the constraint in this plant? Machine A Machine B v O Machine C
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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Transcribed Image Text:Operating expenses (including labor) total a constant $12,000 per week. Raw
materials are not included in weekly operating expenses.
a. Which machine is the constraint in this plant?
Machine A
O Machine B v
Machine C
b. Which product mix provides the highest gross profit? (Hint: consider raw material
cost but not operating expense)
Product mix
Product M
units
Product N
units
c. What is the maximum weekly net profit this plant can earn using the product mix
from Part b? (Hint: consider operating expense and raw material cost)
2$
Weekly net profit

Transcribed Image Text:Problem 22S-17 (Algo)
The M-N plant manufactures two different products: M and N. Selling prices and
weekly market demands are shown in the following diagram. Each product uses raw
materials with costs as shown. The plant has three different machines: A, B, and C.
Each performs different tasks and can work on only one unit of material at a time.
Product M
Product N
Resources: A, B, C (one each)
Availability: 3,900 min./week
Operating expense: $12,000/week
$190/unit
100 units/week
$200/unit
50 units/week
15 min./unit
15 min./unit
A
20 min./unit
15 min./unit
15 min./unit
RM-1
$60/unit
RM-2
$40/unit
/RM-3
$40/unit
Process times for each task are shown in the diagram. Each machine is available
3,900 minutes per week. There are no "Murphys" (major opportunities for the
system to foul up). Setup and transfer times are zero. Demand is constant.
Operating expenses (including labor) total a constant $12,000 per week. Raw
materials are not included in weekly operating expenses.
a. Which machine is the constraint in this plant?
O Machine A
O Machine B
O Machine C
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