Automobile Alliance, a large automobile manufacturing com- pany, organizes the vehicles it manufactures into three families: a family of trucks, a family of small cars, and a family of midsized and luxury cars. One plant outside Detroit, Michigan, assembles two models from the family of midsized and luxury cars. The first model, the Family Thrillseeker, is a four-door sedan with vinyl seats, plastic interior, standard features, and excellent gas mileage. It is marketed as a smart buy for middle-class families with tight budgets, and each Family Thrillseeker sold generates a modest profit of $3,600 for the company. The second model, the Classy Cruiser, is a two-door luxury sedan with leather seats, wooden interior, custom features, and navigational capabilities. It is marketed as a privilege of affluence for upper-middle-class families, and each Classy Cruiser sold generates a healthy profit of $5,400 for the company. Rachel Rosencrantz, the manager of the assembly plant, is capacity of 48,000 labor-hours during the month. She also k that it takes six labor-hours to assemble one Family Thrills and 10.5 labor-hours to assemble one Classy Cruiser. Because the plant is simply an assembly plant, the required to assemble the two models are not produced plant. Instead, they are shipped from other plants aroun Michigan area to the assembly plant. For example, tires, ste wheels, windows, seats, and doors all arrive from variour plier plants. For the next month, Rachel knows that she wi be able to obtain 20,000 doors from the door supplier. A labor strike forced the shutdown of that particular supplie for several days, and that plant will not be able to meet its pi tion schedule for the next month. Both the Family Thrill and the Classy Cruiser use the same door parts, with four r for the Family Thrillseeker and two for the Classy Cruiser. In addition, a recent company forecast of the m demands for different automobile models suggests the demand for the Classy Cruiser is limited to 3,500 cars. is no limit on the demand for the Family Thrillseeker with currently deciding the production schedule for the next month. Specifically, she must decide how many Family Thrillseekers nnd how many Classy Cruisers to assemble in the plant to maxi-
Automobile Alliance, a large automobile manufacturing com- pany, organizes the vehicles it manufactures into three families: a family of trucks, a family of small cars, and a family of midsized and luxury cars. One plant outside Detroit, Michigan, assembles two models from the family of midsized and luxury cars. The first model, the Family Thrillseeker, is a four-door sedan with vinyl seats, plastic interior, standard features, and excellent gas mileage. It is marketed as a smart buy for middle-class families with tight budgets, and each Family Thrillseeker sold generates a modest profit of $3,600 for the company. The second model, the Classy Cruiser, is a two-door luxury sedan with leather seats, wooden interior, custom features, and navigational capabilities. It is marketed as a privilege of affluence for upper-middle-class families, and each Classy Cruiser sold generates a healthy profit of $5,400 for the company. Rachel Rosencrantz, the manager of the assembly plant, is capacity of 48,000 labor-hours during the month. She also k that it takes six labor-hours to assemble one Family Thrills and 10.5 labor-hours to assemble one Classy Cruiser. Because the plant is simply an assembly plant, the required to assemble the two models are not produced plant. Instead, they are shipped from other plants aroun Michigan area to the assembly plant. For example, tires, ste wheels, windows, seats, and doors all arrive from variour plier plants. For the next month, Rachel knows that she wi be able to obtain 20,000 doors from the door supplier. A labor strike forced the shutdown of that particular supplie for several days, and that plant will not be able to meet its pi tion schedule for the next month. Both the Family Thrill and the Classy Cruiser use the same door parts, with four r for the Family Thrillseeker and two for the Classy Cruiser. In addition, a recent company forecast of the m demands for different automobile models suggests the demand for the Classy Cruiser is limited to 3,500 cars. is no limit on the demand for the Family Thrillseeker with currently deciding the production schedule for the next month. Specifically, she must decide how many Family Thrillseekers nnd how many Classy Cruisers to assemble in the plant to maxi-
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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