Problem 225-17 (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 praduct 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 Resources: A, B, C (one each) Availability: 3,900 min./week Operating expense: $12,000/week $190/unit 100 units/week Product N $200/unit 50 units/week 15 min./unit 15 min/unit A B 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 b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating expense) Product mix Product M Product N units 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) Weekly net profit
Problem 225-17 (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 praduct 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 Resources: A, B, C (one each) Availability: 3,900 min./week Operating expense: $12,000/week $190/unit 100 units/week Product N $200/unit 50 units/week 15 min./unit 15 min/unit A B 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 b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating expense) Product mix Product M Product N units 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) Weekly net profit
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...
Related questions
Question
Transcribed Image Text:Problem 225-17 (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 praduct 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
Resources: A, B, C (one each)
Availability: 3,900 min./week
Operating expense: $12,000/week
$190/unit
100 units/week
Product N
$200/unit
50 units/week
15 min./unit
15 min/unit
A
B
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
b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating expense)
Product mix
Product M
Product N
units
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)
Weekly net profit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.