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 Labor-Hours Required (hours/unit) Product 1 Product 2 Hours Available 1.00 0.35 100 B 0.30 0.20 38 C 0.20 0.50 50 Profit contribution/unit $30.00 $15.00 (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. Production Product 1 75.58 Product 2 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 the departments. Which departments would you recommend scheduling for overtime? Dept A What is the upper limit f what you would be willing to pay per hour of overtime in the department you recommended? If required, round your answer to two decimal places. (c) Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is $18 in department A, $22.50 in department B, and $12 in department C. Formulate a linear programming model that can be used to determine the optimal production quantities If required, round your answer to two decimal places. overtime is made availab That's Incorrect Product 1 Product 2 Production If required, round your answer to nearest whole number. Total Profit $ How much overtime do you recommend using in each department? If required, round your answer to two decimal places. If you answer is zero, enter "0". OT hours: Dept. Used A 10 B с What is the increase in the total contribution to profit if overtime is used? If required, round your answer to nearest whole number. × Hide Feedback Partially Correct Icon Key

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 Labor-Hours Required (hours/unit) Product 1 Product 2 Hours Available 1.00 0.35 100 B 0.30 0.20 38 C 0.20 0.50 50 Profit contribution/unit $30.00 $15.00 (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. Production Product 1 75.58 Product 2 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 the departments. Which departments would you recommend scheduling for overtime? Dept A What is the upper limit f what you would be willing to pay per hour of overtime in the department you recommended? If required, round your answer to two decimal places. (c) Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is $18 in department A, $22.50 in department B, and $12 in department C. Formulate a linear programming model that can be used to determine the optimal production quantities If required, round your answer to two decimal places. overtime is made availab That's Incorrect Product 1 Product 2 Production If required, round your answer to nearest whole number. Total Profit $ How much overtime do you recommend using in each department? If required, round your answer to two decimal places. If you answer is zero, enter "0". OT hours: Dept. Used A 10 B с What is the increase in the total contribution to profit if overtime is used? If required, round your answer to nearest whole number. × Hide Feedback Partially Correct Icon Key

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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