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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
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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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: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
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
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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