car manufacturer produces two versions of its popular medium sized model: a hatchback aimed at the family market and a coupe designed to appeal to affluent single customers. Both are based on the same chassis and differ only in the body kit used to make up the cars. They are both produced at the same factory. There are 125,000 hours of manpower and 25,000 basic half-chassis units (two per vehicle) available each week. The hatchback takes 2.5 hours of assembly time while a coupe takes 9.5 hours. At least 1,300 hatchback models should be produced per week. Production is also constrained by the fact that owing to problems with a supplier only 40,000 lock units are available per week. A hatchback uses six of these lock units while a coupe uses four. The profit to the factory on a hatchback
“A car manufacturer produces two versions of its popular medium sized model: a
hatchback aimed at the family market and a coupe designed to appeal to affluent
single customers.
Both are based on the same chassis and differ only in the body kit used to make
up the cars. They are both produced at the same factory.
There are 125,000 hours of manpower and 25,000 basic half-chassis units (two
per vehicle) available each week. The hatchback takes 2.5 hours of assembly
time while a coupe takes 9.5 hours.
At least 1,300 hatchback models should be produced per week.
Production is also constrained by the fact that owing to problems with a supplier
only 40,000 lock units are available per week. A hatchback uses six of these lock
units while a coupe uses four.
The profit to the factory on a hatchback model is estimated to be £4,600 while the
profit on a coupe is £6,400.
The market demand for the cars is high. It is known that demand will exceed
production for time to come so they should be able to sell whatever mix of cars is
produced.
The car manufacturer wants to maximise its profits, but doesn’t know what
combination of versions of its medium-sized model to produce.”
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