of baby wet wipes namely WWorganic and WWfragrance. The raw material required, packaging size, production rates, and selling prices for these products are given in Table 2. Due to the recent increase in the price for raw material, the company has decided to limit the daily procurement to 1,575 kg only. The company has also reserved a storage area of 1,500 f' to store the daily productions and no stacking is allowed to preserve the packaging shape and minimize the risk of contamination. The recent spike in the number of Covid-19 positive cases has led the management of the company to instruct all their employees in the production line to work no more than 7 hours per day. The company has also decided to reduce the number of production lines where only one product cun be manufactured at a time to limit the number of employees working in the production area. Table 2 : Production Data for TR.Dustrious Company Product wWorganic wWragrance Packaging size (n/unit) 4 5 Raw material (kg/unit) Production rate (unit/hr) 60 30 Selling price (RM/unit) 13 All products manufactured are sold and shipped out of the storage area at the end of the day. Therefore, the two products manufactured daily during the new working hours must share the total raw material and storage area available. By using Simplex method, detemine how many units of cach product to be produced per day in order for the company to maximize its total income.
of baby wet wipes namely WWorganic and WWfragrance. The raw material required, packaging size, production rates, and selling prices for these products are given in Table 2. Due to the recent increase in the price for raw material, the company has decided to limit the daily procurement to 1,575 kg only. The company has also reserved a storage area of 1,500 f' to store the daily productions and no stacking is allowed to preserve the packaging shape and minimize the risk of contamination. The recent spike in the number of Covid-19 positive cases has led the management of the company to instruct all their employees in the production line to work no more than 7 hours per day. The company has also decided to reduce the number of production lines where only one product cun be manufactured at a time to limit the number of employees working in the production area. Table 2 : Production Data for TR.Dustrious Company Product wWorganic wWragrance Packaging size (n/unit) 4 5 Raw material (kg/unit) Production rate (unit/hr) 60 30 Selling price (RM/unit) 13 All products manufactured are sold and shipped out of the storage area at the end of the day. Therefore, the two products manufactured daily during the new working hours must share the total raw material and storage area available. By using Simplex method, detemine how many units of cach product to be produced per day in order for the company to maximize its total income.
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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