QUESTION 1 Toys Limited (TL) produces two different types of wooden decorative toys in a factory, namely toy cars and toy soldiers. The production process consists of sawing, assembly and finishing. TL buys wood at N$100 per m³. There is an unlimited supply of wood. The weekly capacity of the sawing department is 600 labour hours, while the assembly and finishing departments are limited to 1200 labour hours each. TL has a market for 300 cars and 375 toy soldiers per week. Profit per toy is as follows: DETAILS Car N$ Soldiers N$ Selling price 250.00 200.00 Direct materials: Wood 36.00 53.00 Other 2.50 2.25 Direct labour: Sawing department 15.00 8.25 Assembly department 30.00 24.00 Finishing department 26.00 13.00 Variable overheads 19.20 16.00 Fixed overheads 7.20 6.00 Profit 114.10 77.50 The cost of labour per department is as follows: DETAILS N$ per hour Sawing department 10 Assembly department 12 Finishing department 13 REQUIRED: (A.) Construct an extended model which can be solved by means of simplex? (B.) Explain under what circumstances will preference be given to use graphical or simplex methods?
QUESTION 1
Toys Limited (TL) produces two different types of wooden decorative toys in a factory, namely toy cars and toy soldiers. The production process consists of sawing, assembly and finishing.
TL buys wood at N$100 per m³. There is an unlimited supply of wood. The weekly capacity of the sawing department is 600 labour hours, while the assembly and finishing departments are limited to 1200 labour hours each. TL has a market for 300 cars and 375 toy soldiers per week.
Profit per toy is as follows:
|
DETAILS |
Car N$ |
Soldiers N$ |
|
Selling price |
250.00 |
200.00 |
|
Direct materials: |
|
|
|
Wood |
36.00 |
53.00 |
|
Other |
2.50 |
2.25 |
|
Direct labour: |
|
|
|
Sawing department |
15.00 |
8.25 |
|
Assembly department |
30.00 |
24.00 |
|
Finishing department |
26.00 |
13.00 |
|
Variable overheads |
19.20 |
16.00 |
|
Fixed overheads |
7.20 |
6.00 |
|
Profit |
114.10 |
77.50 |
The cost of labour per department is as follows:
|
DETAILS |
N$ per hour |
|
Sawing department |
10 |
|
Assembly department |
12 |
|
Finishing department |
13 |
REQUIRED:
(A.) Construct an extended model which can be solved by means of simplex?
(B.) Explain under what circumstances will preference be given to use graphical or simplex methods?
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