Labors Hours Required (Hours/Unit)                 Department Product 1 Product 2 Hours Available Overtime Available Overtime Cost         A 1 0.35 100 10 18         B 0.3 0.2 36 6 22.5         C 0.2 0.5 50 8 12                             Profit Contribution/Unit 30 15                 X1 X2               Production                                       Constraints Used   Available             Dept A Hours                    Dept B Hours                   Dept C Hours                   Dept A Overtime (XA)                   Dept B Overtime (XB)                   Dept C Overtime (XC)                                       Objective:     Profit                   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. What are the optimal production quantities using the avallable overtime? What is the new profit? 1) Product 1 - ? 2) Prdouct 2 -? 3) Profit - ?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
icon
Related questions
Question
Labors Hours Required (Hours/Unit)                
Department Product 1 Product 2 Hours Available Overtime Available Overtime Cost        
A 1 0.35 100 10 18        
B 0.3 0.2 36 6 22.5        
C 0.2 0.5 50 8 12        
                   
Profit Contribution/Unit 30 15              
  X1 X2              
Production                  
                   
Constraints Used   Available            
Dept A Hours                   
Dept B Hours                  
Dept C Hours                  
Dept A Overtime (XA)                  
Dept B Overtime (XB)                  
Dept C Overtime (XC)                  
                   
Objective:    
Profit                  

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. What are the optimal production quantities using the avallable overtime? What is the new profit?

1) Product 1 - ?
2) Prdouct 2 -?
3) Profit - ?
 

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Aggregate planning
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Marketing
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing