The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Department A B с Labor-Hours Required 0.30 0.20 Profit contribution/unit $30.00 (hours/unit) Product 1 Product 2 Hours Available 1.00 Tequined 0.35 0.20 0.50 $15.00 95 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 38 50 Production 69.77 (b) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? 72.09 Dept A What is the upper limit of what you would be willing to pay per hour of overtime in the department you recommended? nimal plass
The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Department A B с Labor-Hours Required 0.30 0.20 Profit contribution/unit $30.00 (hours/unit) Product 1 Product 2 Hours Available 1.00 Tequined 0.35 0.20 0.50 $15.00 95 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 38 50 Production 69.77 (b) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? 72.09 Dept A What is the upper limit of what you would be willing to pay per hour of overtime in the department you recommended? nimal plass
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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