The M–N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each product 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. Process times for each task are shown in the diagram. Each machine is available 2,500 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? multiple choice Machine A Machine C Machine B Incorrect
The M–N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each product 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. Process times for each task are shown in the diagram. Each machine is available 2,500 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? multiple choice Machine A Machine C Machine B Incorrect
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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The M–N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each product 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.
Process times for each task are shown in the diagram. Each machine is available 2,500 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?
multiple choice
Machine A
Machine C
Machine B Incorrect

Transcribed Image Text:b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating
expense)
Answer is complete but not entirely correct.
Product mix
Product M
Product N
100
33
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)
Answer is complete but not entirely correct.
Weekly net profit
$ 960 x

Transcribed Image Text:Resources: A, B, C (one each)
Availability: 2,500 min./week
Operating expense: $12,000/week
Product M
$190/unit
100 units/week
с
15 min./unit
A
20 min./unit
RM-1
$60/unit
Product N
$200/unit
80 units/week
15 min./unit
5 min./unit
RM-2
$40/unit
B
5 min./unit
RM-3
$40/unit
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