(a) Formulate a linear programming model for maximizing total profit contribution. (Let P, units of product/produced, for/= 1, 2, 3.) Max s.t. Department A Department B Department C P1 P₂ P3 20 (b) Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution (in dollars)? with profit s (c) After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are $400 for product 1, $590 for product 2, and $610 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution (in doll taking into account the setup costs? $
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- Tuff-Rider, Inc., manufactures touring bikes and mountainbikes in a variety of frame sizes, colors, and component com-binations. Identical bicycles are produced in lots of 100. Theprojected demand, lot size, and time standards are shown inthe following table: Item Touring MountainDemand forecast 5,000 units/year 10,000 units/yearLot size 100 units 100 unitsStandard processing time .25 hour/unit .50 hour/unitStandard setup time 2 hours/lot 3 hours/lot The shop currently works 8 hours a day, 5 days a week,50 weeks a year. It operates five workstations, each producingone bicycle in the time shown in the table. The shop main-tains a 15 percent capacity cushion. How many workstationswill be required next year to meet expected demand withoutusing overtime and without decreasing the firm’s currentcapacity cushion?XYZ Leather Company manufactures and sells two products, wallets and belts, in its two-department plant. Operating data pertaining to the two products are as follows: Wallets Belts Selling price per unit P30 P50 Cost per unit: Variable manufacturing costs P8 P15 Variable marketing costs P2 P3 Fixed manufacturing costs P5 P5 Fixed marketing costs P6 P1 Cutting Finishing…The Chineke Group of Company manufactures two products, namely product B and product P, and provides you with the following information: Prod. B Prod. P Selling price per unit 80.00 50.00 Less cost of sales: Direct material A @ R5.00 per kg 15.00 10.00 Direct material B @ R4.00 per kg 8.00 12.00 Direct labour @ R6.00 per hour 12.00 6.00 Variable manufacturing overhead @ R5.00 per labour hour 10.00 5.00 Fixed manufacturing overhead per unit 5.00 5.00 Gross profit 30.00 12.00 Less sales & administrative costs: Variable 6.00 4.00 Fixed 10.00 5.00 Net profit per unit 14.00 3.00 Take note of the following constraints: Material A available 360 kg Material B available 360 kg Labour hours available…
- A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows: Process 1 Production rate Daily production time Process 2 35 parts/hour 4 hours/day 20% 15 parts/hour 7 hours/day 9% Percent parts rejected Assume that the daily demand for hubs allows all defect-free hubs to be sold. Select the process that maximizes profit per day if each part is made from $4 worth of material and can be sold for $30. Both processes are fully automated, and variable overhead cost is charged at the rate of $40 per hour.Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 128 units. The following is the BOM in indented form: DESCRIPTION Bracket assembly Wall board Hanger subassembly Hanger casting Ceramic knob Rivet head screw Metal tong Plastic cap USAGE 1 ITEM X A B D E 5 F G 3 1 Below is a table indicating current inventory levels: Item X 26 D 196 F G 95 Inventory 17 69 17 145 1,220 b. What are the net requirements for each item? (Leave no cells blank - be certain to enter "0" wherever required.) Item Net Requirements A B C D F GHelp me
- Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. A B C $15.30 $ 11.20 $12.00 20.40 28.40 34.60 3.70 3.60 4.20 35.80 27.60 38.20 $79.10 $ 77.80 $ 95.40 5.30 27.50 $ 68.50 Multiple Choice A 4.80 $77.10 $ 3.20 5,000 D $11.60 41.40 Products C D 4.40 5.30 $88.40 $ 105.20 $ 4.30 $ 2.60 4,000 3,000 Grinding minutes per unit B 6.30 $ 94.50 $ 2.20 Selling price per unit Variable selling cost per unit Monthly demand in units 5,000 The grinding machines are potentially the constraint in the production facility. A total of 89,600 minutes are available per month on these machines. Direct labor is a variable cost in this company. Up to how much should the company be willing to pay for one additional minute of grinding machine time if the company has made the…Please do not give solution in image format thanku In 2018, the government of Ghana launched operation one district one factory (IDIE). Based on IDIF, Ekumfi Pineapple Factory Co. Ltd (EPF) was launched. In 2019 the management of ERF started production with 100 workers per shift, each of the three shifts working 8 hours per day. Every working day the payroll cost was GHIC 20,000 and overhead expenses amounted to GHC 5000 and material cost GHC 4000. At the end of the first year, the company produced 1,000,000 boxes of pineapple juice. During the second year, EPF acquired a loan from Exim Bank to purchase a new plant. After the introduction of the new plant, the management reduced the size of its workers per shift to 80, each working 8 hours per day, with the payroll cost reducing to GHC 18,000 and overhead expenses also reducing to GHC 4000 and material cost rising to GHC 6000. Production rose to 1,200,000 boxes. Regard yourself as the Operations Manager of EPF: a) What are the…The seven-month demand for product X is as follows: 500; 6,000; 2,000; 1,500; 4,000; 5,500; and 6,500. You planned to use a level production rate of 4,000 unit per month. a. If currently, the company has 18 workers, determine if you will hire or fire worker/s. The labor standard is 0.64 hours, and the regular hours are 160.
- DataSpan, Incorporated, automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations. Throughput time (days) Delivery cycle time (days) Manufacturing cycle efficiency (MCE) Percentage of on-time deliveries Total sales (units) 1 2 Month ? ? ? ? ? ? 91% 86% 3,460 3,312 Move time per unit Process time per unit Wait time per order before start of production Queue time per unit Inspection time per unit 3 ? ? ? 82% 3,143 4 Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months: ? ? ? 78% 3,025…The binary variables in the fixed cost models correspond to: A.) The number of units or products produced. B.) The total profit C.) The amount of labor hours D.) A process for which a fixed cost ovcursWork−in−Process Inventory has a debit balance of $84,000 and Manufacturing Overhead has a credit balance of $10,000. If an additional $54,000 of direct labor and $1,000 of indirect labor are incurred during production, what is the balance of Work−in−Process Inventory? A. $30,000 B. $9,000 C. $138,000 D.