Q2. An electronic company produces especially coded chips in 64 MB, 256 MB, and 512 MB sizes. To produce a 64 MB chip requires 8 hour of labor, a 256 MB chip takes 13 hours, and 512 MB chip requires 16 hours. The monthly production capacity of the company is 1,200 hour. The firm's sales manager estimates that the maximum monthly sales of the 64 MB, 256 MB, and 512 MB chips are 40, 50, and 60, respectively. The company has the following goals (ranked in order from the most important to the east important): (- 1. Meat exactly the demand of the best customer for thirty 64 MB chips and thirty-five 256 ME chips. 2. Produce sufficient chips to at least equal the expected sales estimates. 3. Avoid under utilization of the production capacity.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Q2. An electronic company produces especially coded chips in 64 MB, 256 MB, and 512 MB
sizes. To produce a 64 MB chip requires 8 hour of labor, a 256 MB chip takes 13 hours, and 512 MB
chip requires 16 hours. The monthly production capacity of the company is 1,200 hour. The firm's
sales manager estimates that the maximum monthly sales of the 64 MB, 256 MB, and 512 MB chips
are 40, 50, and 60, respectively. The company has the following goals (ranked in order from the
most important to the east important):
1. Meat exactly the demand of the best customer for thirty 64 MB chips and thirty-five 256 MB
chips.
2. Produce sufficient chips to at least equal the expected sales estimates.
3. Avoid under utilization of the production capacity.
Transcribed Image Text:Q2. An electronic company produces especially coded chips in 64 MB, 256 MB, and 512 MB sizes. To produce a 64 MB chip requires 8 hour of labor, a 256 MB chip takes 13 hours, and 512 MB chip requires 16 hours. The monthly production capacity of the company is 1,200 hour. The firm's sales manager estimates that the maximum monthly sales of the 64 MB, 256 MB, and 512 MB chips are 40, 50, and 60, respectively. The company has the following goals (ranked in order from the most important to the east important): 1. Meat exactly the demand of the best customer for thirty 64 MB chips and thirty-five 256 MB chips. 2. Produce sufficient chips to at least equal the expected sales estimates. 3. Avoid under utilization of the production capacity.
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