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. Resources: A, B, C (one each) Availability: 3,000 min./week Operating expense: $12,000/week Product M $190/unit 110 units/week 15 min/unit 20 min/unit RM-1 560/unit Product N $200/unit 50 units/week 15 min/unit 15 min/unit RM-2 $40/unit 15 min/unit /RM-3 $40/unit Process times for each task are shown in the diagram. Each machine is available 3,000 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.

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. Resources: A, B, C (one each) Availability: 3,000 min./week Operating expense: $12,000/week Product M $190/unit 110 units/week 15 min/unit 20 min/unit RM-1 560/unit Product N $200/unit 50 units/week 15 min/unit 15 min/unit RM-2 $40/unit 15 min/unit /RM-3 $40/unit Process times for each task are shown in the diagram. Each machine is available 3,000 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.

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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